Dogecoin (DOGE) rose more than 11% on Wednesday as part of a broad-based cryptocurrency market recovery, which took Bitcoin above the key $20,000 threshold and Ethereum above its pre-merger levels, but another event could which is expected on Friday DOGE explosion. in much larger proportions.
In fact, we learned yesterday that Elon Musk, the famous boss of Tesla and Space X, was going to complete the takeover of the social networking company Twitter from this past Friday. The operation was already known, but there was uncertainty about the exact date of completion. But what is the connection between the arrival of Elon Musk at the head of Twitter and a possible explosion in the price of Dogecoin?
The love story of Elon Musk and Dogecoin
The answer lies in Elon Musk’s affection for Dogecoin, which he has repeatedly touted as his favorite cryptocurrency. Some may have forgotten, but there was a time not so long ago when Elon Musk was the main bullish factor for DOGE, and all you had to do was follow his Twitter account and buy Dogecoin with every one of his tweets showing the cryptocurrency to earn money. easily.
Elon Musk also played a major role in the April-May 2021 bullish explosion that brought Dogecoin to its historic high.
But Elon Musk’s love for Dogecoin isn’t just expressed through his tweets about the cryptocurrency, which are admittedly increasingly rare. In fact, Musk also made Dogecoin an acceptable payment method for merchandise products marketed by his company Tesla.
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Towards integration of Dogecoin with Twitter?
As you might have guessed, the arrival of Elon Musk at the head of Twitter is thus fueling speculation about the possible integration of DOGE into the social network, in one form or another, leading to bullish Dogecoin forecasts.
In addition to Musk’s undisguised interest in Dogecoin, these speculations are also fueled by the revelation of a professional communication from Elon Musk a few weeks ago that shows that the Tesla boss is indeed planning to bring Twitter and Dogecoin closer together.
In particular, in a call to Steve Davis, president of The Boring Company, it is alleged that Musk envisioned “a blockchain-based version of Twitter, in which ‘tweets’ are integrated into the comment transaction”, and in the event that “you might have to pay 0.1 doge . per comment or repost that comment”.
Such a performance would undoubtedly ensure a strong bullish future for Dogecoin. But many other options are possible, for example a tip function in Dogecoins, which would also have a decisive effect on the price of the Doge.
DOGE bullish reversal in sight
To form your own opinion on Dogecoin and its prospects, it is also necessary to look at the charts.
However, in addition to the arrival of Musk at the head of Twitter, the Dogecoin could benefit in the coming weeks from a favorable technical context.
In fact, the Dogecoin has been trending sideways since June, which allows us to say that the downturn in the background coming off the May 2021 high is over.
Later, DOGE crossed a major uptrend line at the end of September, as can be seen in the chart below.
We also note that the Dogecoin crossed its 100-day moving average today, sending an additional bullish signal, which presents the next technical objectives, which is the 200-day moving average, currently $0.078, and the August 16 high at $0.089 , before the major psychological level of $0.1.
Do you want to know other cryptocurrencies like Dogecoin? Check out our guide to Meme Coins!