This week, Dogecoin continues to demonstrate strength against the background of Elon Musk’s takeover of Twitter.
Elon Musk’s acquisition of the social media giant brought the concept of incorporating Dogecoin closer to realization, causing the price of the world’s biggest meme cryptocurrency to jump by up to 165% to $0.1583. However, the price of the crypto asset fell drastically during the weekend before the Fed’s interest rate announcement, reaching a low of $0.1230 on Wednesday.
Despite Bitcoin, Ethereum, and other cryptocurrencies demonstrating little volatility, Doge has stayed strong, with investors evidently stockpiling in anticipation that a further nod on the integration may be a price booster.
Expert in crypto research “Ali” released a graph indicating that 350,000 addresses acquired almost 64 billion DOGE on Saturday at an average price of $0.009. Technically, this level is seen as firm support by Dogecoin bulls, since it took the market almost seven months to surpass it. Consequently, according to Ali, this level “provides a robust and rigid support floor for DOGE,” as he tweeted.
Moreover, according to statistics from IntoTheBlock, 64% of Dogecoin traders are now in the black, with the attitude index for this cryptocurrency leaning toward “mainly positive.”
In the meanwhile, the majority of investors feel there is still an opportunity for Dogecoin’s development, despite its massive epidemic. Santiment, an analytics business specializing in cryptocurrencies, stated on Monday, “Even after more than a year of a severe bear market, we still see potential for speculation.”
David Gokhshtein, the founder of Blockchain Media Company Gokhshtein Media, also said that there is a chance that Doge would reach its all-time high of $0.7332 if Elon musk continues with his Dogecoin-Twitter integrations plans.
DOGE’s breakout may have long-term consequences if the bulls create a new base above the prior resistance-turned-support of $0.92. Currently, following the rally may be dangerous due to the probability of a “sell-the-news” occurrence. The majority of traders are now waiting for a price drop to enter the market around the stated support, in the belief that it will assist in triggering a big rebound to $0.20.
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