Dogecoin price jumps 40% on Elon Musk, Twitter’s crypto wallet rumors
Dogecoin’s (DOGE) price rose to its best levels in two months as traders weighed Twitter’s potential to create a cryptocurrency wallet product.
Elon Musk is fueling the Dogecoin rally again
DOGE’s price jumped to $0.081 on October 27. The price surged about 40% two days after Jane Manchun Wong, a popular technology blogger, claimed that Twitter is working on a wallet prototype that supports cryptocurrency deposits and withdrawals.
Elon Musk is the thread connecting Dogecoin and Twitter. Earlier this year, the Tesla and SpaceX CEO won the bid to buy Twitter for $44 billion. Later, on April 11, he flirted with the idea of adding Dogecoin as a payment method for the Twitter Blue subscription service.
DOGE’s price grew 30% to $0.17 in 10 days following Musk’s pro-crypto pitch to the Twitter board. But memetoken fell drastically afterward, hitting as low as $0.05 in June when Musk tried to back out of the deal, citing his concerns over Twitter’s user numbers.
Twitter sued Musk in response, which eventually got the court to rule in its favor. Chancellor Kathaleen McCormick, the judge overseeing the legal battle, denied attempts by Musk to delay the trial, noting that the deal was set to close at 5:00 PM ET on October 28.
Musk changed his Twitter bio to “Chief of Twit” on October 26, followed by a personal visit to Twitter headquarters the same day. That raised expectations that Musk would close the deal by the court deadline, paving the way for Dogecoin to become an integral part of the Twitter platform.
#Dogecoin pumped 15% after this: pic.twitter.com/MCZ9iGyt1a
— Altcoin Daily (@AltcoinDailyio) 27 October 2022
DOGE price risks a 20% correction
From a technical point of view, Dogecoin’s recovery is showing signs of exhaustion as the price tests a strong resistance confluence.
On the three-day chart, the confluence consists of three resistance levels: a multi-month descending trend line, the 50-3D exponential moving average (the red wave), and a horizontal level around $0.08, as shown below.
Given DOGE’s immediate correction after testing these resistance levels, the token’s possibility of going lower looks high. Meanwhile, the downside target is close to the rising trend line that has served as support for the past few months.
That puts DOGE’s price on track for around $0.06 in Q4/2022, about 20% below today’s price.
Related: How Long Will the Bear Market Last? Signs to watch for a crypto market reversal
Conversely, a decisive breakout above the resistance confluence could see DOGE see the 200-3D EMA (the blue wave) near $0.11 as its next upside target. In other words, a 50% boom from today’s price level.
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