Dogecoin price surges on rumors about becoming payment tool at X
- Dogecoin price rallied to $0.078 as Elon Musk’s Twitter app rebranded to X.
- Dogecoin network’s large wallet investors bought three billion DOGE tokens over the past three weeks.
- The social dominance of the meme coin climbed, alongside whale accumulation of DOGE tokens.
Dogecoin, the largest meme coin in the crypto ecosystem, is experiencing an increase in price and in other on-chain metrics such as social media dominance in light of Twitter’s rebranding to X. The Shiba-Inu-themed coin, which has Elon Musk among its supporters, seems to be taking the center stage due to rumors that it could be used as a payment method at X.
Also read: Dogecoin, Shiba Inu and ApeCoin trade volume spikes as correlation to Bitcoin dwindles
Elon Musk’s Twitter rebranding catalyzes Dogecoin recovery
Elon Musk, self-proclaimed Dogefather and one of the most influential proponents of the meme coin, recently announced Twitter’s rebrand to “X.” As the blue bird left the micro blogging platform to make way for X, bullish sentiments of DOGE holders resurfaced as some expect the meme coin could in some way be incorporated in the platform as a form of payment.
Musk’s comments have typically catalyzed price rallies in the meme coin in the past. The rebranding effort has led to the speculation that X could soon start accepting DOGE tokens. Analysts on Twitter argue that advertisers could pay for ads and other services using DOGE tokens.
These rumors are not completely unfounded as Tesla allows users to pay for goods in its store with DOGE tokens. Moreover, Musk has hinted DOGE payments on Twitter several times since his purchase of the social media platform.
Find out more about the relationship between Twitter’s rebranding and DOGE here.
Dogecoin price rallied 11.4% on Binance as market participants responded to the news of Twitter’s rebranding announcement in a context of a broad sell-off in the crypto market. The meme coin’s price rally was fueled by Musk’s interest in Dogecoin, speculation of DOGE tokens being used as payments on the app and bullish on-chain metrics.
Experts analyzed DOGE price action and catalysts and predicted a 110% rally in DOGE price in the short term. For price targets and signs of a bullish recovery in DOGE, check this post.
DOGE on-chain metrics turn bullish
Two key on-chain metrics for the meme coin, social dominance and volume of DOGE holdings of whales, have flipped bullish. Based on data from crypto intelligence tracker Santiment, DOGE has seen a rise in mentions across social media platforms.
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DOGE social dominance vs price
Rising social dominance is typically associated with an increase in the asset’s price, as seen in the chart above.
Moreover, whales anticipate a recovery in the meme coin’s price. This has driven large wallet investors to spend $225 million to acquire three billion DOGE tokens over a three-week period, as seen in IntoTheBlock’s chart below.
Whale accumulation of DOGE tokens
Whales owning between 1 billion and 10 billion DOGE tokens have recently increased their holdings of the Shiba-Inu-themed cryptocurrency. Accumulation by whales is typically a bullish sign for DOGE price. To find out why traders should pay attention to Dogecoin price and targets, check this post.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
