|

Dogecoin prices rally by 21% in one day as Elon Musk makes a presence at Twitter HQ

  • Dogecoin prices noted a strong uptick on Wednesday, rising by 14.52% during intra-day trading.
  • Elon Musk’s Twitter acquisition deal is expected to be closed by October 28.
  • Dogecoin whales have been keeping their heads low for about nine months now.

Dogecoin price noted an unexpected rise on Wednesday, following a green candle from the day before. Two reasons played a crucial role in this rally, the first being the broader market cues and Elon Musk, aka “DOGEfather,” being the second. This bullishness is expected to revive the performance of a crucial cohort of DOGE holders.

Dogecoin price takes a leap

Dogecoin price shot up by 14.52% on Wednesday, bringing the 24-hour rise to 21.22%, with DOGE trading at $0.072. The crypto market cap rising and crossing the $1 trillion mark during the intra-day trading was a factor in DOGE’s rise.

Another factor that contributed to Dogecoin’s rise was Elon Musk’s advancement in the Twitter acquisition. The billionaire made a presence at the Twitter HQ, and while the tweet does not have any correlation with Dogecoin, his influence on the asset’s price in the past justifies this rise.

The deal is reportedly nearing a close and could be done as close as October 28, Friday, bringing the six-month-long ordeal to an end.

Dogecoin price increase also helped the meme coin rise through two major resistances, the 50-day (red) Simple Moving Average (SMA) and the 100-day (blue) SMA. These levels form solid supports and have sustained DOGE’s price rise in the past.

TradingView Chart
DOGE/USD 1-day chart

However, since the buying pressure resulted in the asset being overbought, Dogecoin price could see a cooldown. Should the Relative Strength Index (RSI) return to the bullish zone without DOGE falling, the 21% rally would sustain.

Dogecoin whales could be triggered

Dogecoin price whales have considerable domination over the supply, which makes their movement critical to a price rise. However, following the bearish market conditions, these whales have been quiet for the last few months. 

Since Wednesday’s price rise is the biggest since April, whales are expected to become active again, provided Dogecoin price does not slip on the charts. This is crucial for DOGEsince its whale transaction volume has been averaging at $1 billion, with a few spikes every now and then.

Dogecoin whale transaction volume 

If Dogecoin’s price maintains its current heading, it might even rise above $0.08, a price level that has not been tested as support in almost five months.

Author

Aaryamann Shrivastava

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.

More from Aaryamann Shrivastava
Share:

Editor's Picks

Binance revokes SignalPlus API keys over potential security threat

Binance, the largest cryptocurrency exchange, announced on Thursday that it revoked the Application Programming Interface (API) keys linked to SignalPlus, a third-party institution-grade technology firm.

XRP gains ground as Ripple CEO says US crypto users aren’t going anywhere after midterms, calls for clear rules

Ripple (XRP) ticks higher on Thursday, trading near $1.32. The remittance token is up roughly 10% from last week’s trough at $1.20, suggesting that the path of least resistance is gradually flipping upward.

Top Altcoins Price Forecast: Ripple, Cardano and Solana extend post-midterms rally

Top altcoins, including Ripple (XRP), Cardano (ADA), and Solana (SOL) are trading in the green on Thursday, extending a steady recovery so far this week, driven by the post-US midterms relief.

Bitcoin claims $80,500 as short liquidations mount

Bitcoin (BTC) extends its rebound, climbing above $80,500 on Thursday after closing above the key Exponential Moving Averages (EMAs) the previous day. The rebound comes as a short squeeze triggers nearly $800 million in liquidations over the past 24 hours.

Bitcoin: Binance security breach and hawkish Fed push BTC lower
Bitcoin (BTC) continues to weaken this week, down more than 3% and heading for its fourth straight weekly loss. The largest cryptocurrency by market capitalization is facing a bearish outlook, fueled by a hawkish Federal Reserve (Fed) outlook at the October meeting and a reported $6.3 billion hack at Binance, which is driving risk aversion and triggering heavy liquidations.