Dogecoin price continues to lead among other crypto majors, bringing its weekly accumulated gains to 30%. The largest meme coin spiked to $0.0848 on Thursday but retraced to close the day at $0.0770.
As reported, Dogecoin price’s potential to hit $1.000 is becoming apparent every passing day, especially with Elon Musk taking the reins as the CEO of Twitter. The billionaire, the founder and CEO of Tesla – the world’s largest electric vehicle manufacturer, assured investors that he would complete the company’s acquisition (Twitter Inc.) on Friday, October 28.
Elon Musk Becomes Twitter CEO – What Does This Mean for Dogecoin price?
Elon Musk has taken over as the new CEO at Twitter after firing the ongoing CEO, Parag Aggarwal. A series of changes are expected at the social media company, with more layoffs, especially among its top executives. Two other people were shown the door, including Twitter CFO Ned Segal and the firm’s head of legal, Vijaya Gadde.
Musk has been a major Dogecoin enthusiast to the extent of calling himself the “Dogefather.” His statements about Dogecoin have often impacted its price. As the billionaire finalized his deal on the microblogging platform, Dogecoin price climbed from $0.0628 to a weekly high of $0.0848.
With Elon Musk at the helm of Twitter, Dogecoin could secure its position as the new social media meme coin. The largest meme coin use cases have continued to grow over the last two years, bolstered by its association with Musk.
Already over 2,000 global businesses accept Dogecoin as payment, according to the crypto media platform Cryptomode. Musk’s two leading companies, Tesla and SpaceX, currently accept payments in DOGE.
DOGE will likely be accepted as the preferred token for Twitter-based transactions. Such backing will benefit Dogecoin as it tries to recoup the ground to its historical high of $0.7315. Dogecoin price now exchanges hands at $0.0819, 89.1% below the record high.
Why Dogecoin Price rally May Be Unstoppable
Dogecoin price took a brief hiatus at $0.0800 after jumping from its breakout point at $0.0628. The 200-day SMA (Simple Moving Average) marked the seller congestion at that level; however, it now functions as the token’s immediate support.
Backing the uptrend are different fundamental, micro and technical factors. From a technical perspective, Dogecoin sits on top of robust support that could prevent a trend reversal if investors pull the rug and lock in gains.
A break above the resistance highlighted by the upper range limit (in gray) could begin a larger swing to $0.1435. This breakout target represents the distance between the lower and upper range limits – extrapolated above the breakout point.
The OBV (On Balance Volume) indicator reinforces the bulls’ influence on the price, especially with a spike in Dogecoin’s trading volume. In other words, DOGE is seeing an influx of positive volume which will keep the uptrend intact.
Fundamentals Guard Dogecoin Price Recovery
Trend reversals are usually expected after big movements in price, like in the case of Dogecoin’s move above $0.0800. However, the In/Out of the Money Around Price (IOMAP) model by IntoTheBlock affirms that Dogecoin price’s path with the least resistance is to the upside.
The chart below reveals robust support between $0.0772 and $0.0792. Approximately 27,000 addresses previously bought 5.89 billion DOGE in the range. If overhead pressure sends Dogecoin price spiraling, holders within this range will put up a fight in a bid to protect their gains. Hence, the likelihood of Dogecoin price tagging a higher level at $0.1000 will bring its all-time high at $0.7315 and the much desired $1.0000 in sight.
Large volume investors, referred to as whales, are also putting their feet down to back Dogecoin’s relief rally. In the last week, addresses with 1 million to 10 million DOGE have jumped to 3,720 from 3,707. This was a minor move in a buying spree that appears to have kicked off around mid-August. If the demand for the leading meme token continues to surge, investors should acclimatize to an extended rally as the year ends.
This on-chain analysis will only be complete if investor sentiment, which has been on an upward roll this week and Dogecoin’s ballooning social volume are mentioned. Looking at the chart below, the curve (in red) represents positive sentiment, while social volume is blue.
Investors reacted positively to the news that Elon Musk was finally taking over Twitter. While positive chatter hit 3,012 on Thursday, its total social volume spiked to 4,658. Dogecoin price also jumped in tandem with the investor sentiment, attracting market participants to capitalize on the move.
Meanwhile, Dogecoin price will, for the time being, come under the microscope, with traders looking for long positions above $0.0850. A successful breakout would be necessary for Dogecoin price bullish outlook to $0.1435, $0.7315 and $1.0000, respectively.
On the other hand, traders should look for possible trend reversals, frequently occurring after an asset moves significantly in either direction – up or down. As mentioned, investors could start profiteering if a breakout to $0.1000 does not materialize. Therefore, scanning for a potential bearish correction could prove profitable, especially below the 200-day SMA.