Dogecoin jumps by 7.3% as Elon Musk revives $44 billion Twitter deal to prevent trial
- Elon Musk first made the deal back in April when he proposed buying Twitter at the price of $54.20 per share.
- The letter received by Twitter highlights Musk’s demand to end the ongoing trial against them.
- Dogecoin noted a sharp incline of 7.3% following the announcement of the revival of the acquisition.
Elon Musk’s proposal to buy the social media giant, Twitter, has been one of the most talked about acquisitions in the last few years.
While the SpaceX CEO seemed enthusiastic about transforming the platform to promote free speech, he announced that he was backing out only a few weeks after initial discussions. Now once again, reports surrounding the deal have surfaced, pushing Dogecoin’s price higher.
Elon Musk is at it, again
In a letter sent to Twitter on Monday, Musk stated that he intends to close the transaction that he initiated back in April 2022. The development has reportedly been forced by Twitter after it sued Musk for backing out of the deal in July.
The Delaware Chancery Court, where the suit was filed, was set to hold the trials from October 17. However, Twitter held the option of retaining jurisdiction until the deal closed, which is what Elon Musk will be going ahead with.
As the price of Twitter’s stock revived to $52 following the news, the terms of the agreement did not change. The deal is still set at $54.20 per share, valuing Twitter at $44 billion.
But it wasn’t just Twitter’s stock price that noted a sudden rise. Musk’s pet cryptocurrency, Dogecoin, was also quickly rising in response to the positive development.
Dogecoin barks up the charts
Trading at $0.0647, DOGE went up by 7.3% in the last couple of hours. Musk’s well-established influence on the meme coin once again proved beneficial for investors.
The incline did help DOGE retest the 50-day as well as the 100-day Simple Moving Averages (SMA) but did not flip them into support.
The closest critical resistance for DOGE still stands at $0.0783, which is also the 23.6% Fibonacci Retracement of $0.1729 to $0.0491. In order for DOGE to reclaim it as support, the meme coin will warrant higher buying pressure.
At the moment, as evinced by the Relative Strength Index (RSI), the buying pressure is at a 2-month high, which is still not enough to push DOGE up to $0.0783.
However, the beginning of the fourth quarter has been relatively positive, which might support DOGE’s rise going forward.
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
