Dogecoin Price Predictions Now Bullish As Elon Musk Twitter Takeover Again?
Dogecoin price is up almost 9% today as Elon Musk’s Twitter acquisition is back on the table. However, will Dogecoin make it to the 2021 highs?
Latest Elon Musk SEC filing
A letter sent to Twitter’s lawyers from the “Musk parties” on the sec.gov website states:
Gentlemen: On behalf of X Holdings I, Inc., X Holdings II, Inc. and Elon R. Musk (the “Musk Parties”), we are writing to notify you that the Musk Parties intend to proceed with close the transaction contemplated by the merger agreement on April 25, 2022.
Twitter shares have also pumped on the news, more so than DOGE – could cryptocurrency lag stocks, and DOGE price set to soar higher?
Twitter stock price ended the Tuesday session up 22%, at $52.05. Elon Musk will buy Twitter for $54.20 per share, for $44 billion.
Twitter Investor Relations (@TwitterIR) has today confirmed the agreement:
Dogecoin Price Prediction
Dogecoin is now trading at around $0.065, having hit an intraday high of just over $0.066 at press time.
Dogecoin is still down about 92% from its all-time high of $0.74 shortly before Elon Musk appeared on Saturday Night Live to discuss the popular meme coin, in May 2021.
Despite the 18-month bear market, Dogecoin still has a market cap of $8.7 billion, the largest meme token in the crypto market.
Its closest competitor Shiba Inu has a market cap of $6.3 billion, and new meme coin Tamadoge recently surged 1,870% from its token presale to a market cap of over $150 million, surpassing Baby Doge Coin and Dogelon Mars.
With its high market cap and being an inflationary asset, Dogecoin may struggle to recover. Every Elon Musk tweet or news event that previously caused a Dogecoin price pump – such as Tesla accepting DOGE for the purchase of goods, and later SpaceX – has backfired.
Conservative investors may want to wait to see if this latest Dogecoin price rally can really spark another uptrend.
From a technical analysis point of view, this would mean that higher lows and higher highs were printed on a high time frame (HTF) chart. On the weekly chart, if the DOGE price can start closing candles above $0.089, the market structure will then turn bullish.
In particular, one of the top crypto traders on Twitter, TraderSZ, opened a long position targeting that level last week when the Dogecoin price was $0.06.
From a macro point of view, there is little indication of a long-term price reversal, but even with the weekly candle up 11.6%. TraderSZ tends to take short-term trades within a sideways range.
Is Dogecoin a good investment now?
Every short-term Dogecoin pump has been an opportunity for high R:R short in 2022 – even down 92%, DOGE has little utility and an infinite supply, so has room to keep dropping.
Another well-known trader Altcoin Sherpa is now considering a Dogecoin short from the current levels, since this latest Elon Musk-related move. His current Dogecoin price prediction is bearish.
Like Robinhood CEO Vlad Tenev tweeted earlier this yearDogecoin cannot compete with a standard debit card transaction as a medium of exchange and payment.
One speculation among Dogecoin holders is that once Elon Musk owns Twitter, DOGE could become the social media platform’s “native currency” — but the billionaire has yet to lay out any roadmap for that.
Read our full Dogecoin price prediction post for a closer look at Dogecoin price history, more TA and fundamental analysis, and some possible bullish forecasts.
Also see our recent Tamadoge price prediction, a potential ‘Dogecoin killer’ that is deflationary with low fixed supply and strong growth potential, highlighted yesterday in Cointelegraph.
We first reviewed TAMA in our crypto presale section, and since the 18x price increase, we’ve also added several presale reviews, including the IMPT token.
