Dogecoin price targets $0.50 as Elon Musk enters $44 billion investment talks for X
- On Wednesday, the price of Dogecoin gained 0.30%, approaching the $0.26 level.
- DOGE’s mild recovery coincided with news that Elon Musk is planning to raise funds for the social media company X at a $44 billion valuation.
- Rising market volumes suggest DOGE could advance further as speculative traders eye gains from imminent volatility.
Dogecoin price gained 0.30% on Wednesday, getting close to the $0.26 resistance after four consecutive days of losses. News reports show the DOGE markets were lifted by fresh investment talks involving Elon Musk’s social media company X.
Dogecoin (DOGE) signals bullish reversal as Elon Musk enters $44B investment talks
Dogecoin surged on Wednesday as Bloomberg reported that Elon Musk’s X is in talks to raise funding at a $44 billion valuation—the same price Musk paid for Twitter in 2022.
The news sent ripples through the crypto market, reigniting speculation about DOGE’s potential role in X’s financial ecosystem.
X’s latest funding push marks a pivotal moment for the platform, which faced major advertiser criticisms and valuation markdowns following Musk’s acquisition.
The company’s turnaround efforts now appear to be gaining traction, with private investors considering fresh capital injections.
Musk has frequently leveraged private markets to secure billions for his ventures, including Tesla, SpaceX and his AI startup, xAI, which is reportedly seeking a valuation of up to $75 billion.
Now, with X exploring financing options, market watchers are eyeing its potential impact on digital assets—especially Dogecoin.
Dogecoin Price Action, Feb 18, 2025
On Wednesday, Dogecoin’s price rose 0.30%. The rally coincided with reports of Musk’s funding negotiations, reinforcing the long-standing correlation between his corporate maneuvers and DOGE’s price action.
Will Elon Musk’s X deal drive up Dogecoin prices?
After multiple references over the years, Dogecoin has evolved into a speculative asset for investors to hedge for or against Elon Musk’s corporate moves.
Based on Dogecoin’s price surge in the wake of the current reports, traders may anticipate that any expansion of X’s financial infrastructure could effectively expand DOGE’s utility.
Notably, back in March 2024, X Payments LLC—the financial arm of X—secured three additional money transmitter licenses from New Mexico, Oregon, and Illinois, bringing its total to 22 approved states.
These licenses allow X to facilitate money transfers, akin to PayPal and Venmo.
Given Musk’s background as a former PayPal CEO, he is well-versed in navigating the regulatory landscape of digital payments.
Musk’s ambition to transform X into an “everything app” has long included a payments component, though regulatory scrutiny has slowed implementation.
However, with shifting regulatory sentiment and Musk’s close ties to the Trump administration, speculation is mounting that X could soon roll out financial services.
If X moves forward with a payment system, many expect Dogecoin to play a role, given Musk’s repeated endorsements and its historical association with his ventures.
This prospect has positioned DOGE as a speculative bet on the future of X’s payments ecosystem.
Dogecoin price forecast: DOGE could target $0.50 rally
If Elon Musk adopts DOGE as the official cryptocurrency for X, daily transactions on the network could potentially double, inevitably driving prices along.
However technical indicators highlight major roadblocks to breach before a $0.50 viable breakout attempt.
As seen below, Dogecoin (DOGE) is exhibiting early signs of a bullish reversal, with price action flirting with key resistance levels.
The daily chart shows DOGE trading at $0.252, having gained 0.30% in the current session.
Notably, the price is hovering near the middle Bollinger Band at $0.265, a critical resistance level that, if breached, could open the doors for an extended rally toward $0.30.
Dogecoin Price Forecast | DOGEUSD
On the bearish side, DOGE remains capped below the upper Bollinger Band at $0.306, a major supply zone.
The recent price action shows a failed attempt to push past this level, suggesting sellers remain active.
If DOGE fails to reclaim $0.265, a rejection could send it tumbling toward the lower Bollinger Band support at $0.225, invalidating the bullish setup and delaying any breakout attempts toward $0.50.
Author
Ibrahim Ajibade
FXStreet
Ibrahim Ajibade is an accomplished Crypto markets Reporter who began his career in commercial banking. He holds a BSc, Economics, from University of Ibadan.
