Buyers are currently the dominant force in the market, but there could be new bullish momentum in the coming hours/days. The price must break through resistance at USD 0.1540 to confirm the resumption of the higher trend.
The price of the popular meme coin Dogecoin (DOGE) rose sharply after the news that Elon Musk became the owner of Twitter.
DOGE is trading at around USD 0.139 and has accumulated a 6.9% loss over the last 24 hours. Its trading volume is above USD 2.43 billion, and its market capitalization is about USD 18.44 million. It occupies 13th place in the cryptocurrency ranking, according to CoinGecko.
Elon Musk offered to buy American microblogging and social networking service Twitter a few weeks ago. After signing a deal of around USD 44,000 million, the acquisition is now a reality.
After the purchase, the value of the favorite crypto asset of the billionaire businessman jumped by almost 40%.
Musk has advocated for DOGE, which led to the optimism behind that rise in its price. Traders and investors hope that the cryptocurrency can gain even more exposure on Twitter after the acquisition.
The tycoon proposed integrating payment with Dogecoin for those wanting to subscribe to Twitter Blue, among some other changes.
The main objective of purchasing the platform is to avoid censorship, but DOGE holders have been speculating on the price.
Where the DOGE Price Dogecoin Might Head Next
Due to the news about the acquisition, the price of DOGE jumped to a daily high of USD 0.171. In that way, it broke through several immediate resistances, creating a short-term bullish transition.
A strong candle developed and wrapped up a drop of more than two weeks in the price. Buyers are currently the dominant force in the market.
Although a pullback is underway, there could be new bullish momentum in the coming hours/days. If it extended, which is most likely, the next target would be to break through resistance at USD 0.17.
Following the new intention, the price crosses 8-day EMA and 18-day SMA to the upside.
If the price broke through the above resistance level, the 200-period SMA could start to give bullish signals.
The Price of DOGE Has Not Yet Resumed the Higher Trend
The weekly chart shows that the price is undergoing a significant corrective process in the medium/long term.
The recent upward jump is due to the news about the purchase of Twitter by Elon Musk. The price of Dogecoin reached a higher low, suggesting the start of a medium-term trend transition.
Before confirming that the price has resumed the higher trend, it must break through the resistance at USD 0.1540 with determination. At the moment, there seems to be a scenario with good odds in its favor.
The long-term trend correction in the price could run its course if that did not happen. If it lost the support at USD 0.1310, it would remove the recent intention to change the bearish direction.
The price maintains the 8-week EMA and 18-week SMA crossed to the downside, following the direction of the last few months. Meanwhile, the 200-period SMA has remained bullish thanks to the significant bullish rally starting in early 2021.
By Alexander Salazar
