Dogecoin (DOGE), the largest meme coin in the cryptocurrency space, has recorded over 30% gains over the last month, witnessing a huge spike in whale transactions to hit the highest volume of the year alongside address activity.
Recent developments have served as a catalyst, fueling a bullish narrative for DOGE holders. At the time of writing, the meme-inspired token was trading at $0.09, up 9.2% in a week but around 1.2% lower than its price on the last day.
Notably, the meme coin’s price has been susceptible to Elon Musk’s actions and statements, including an October price soar after Musk completed his Twitter deal.
DOGE Price Surges on News of Elon Musk’s Plans to Boost Twitter Capabilities
Many in the crypto space are elated following the news of Twitter CEO Elon Musk advancing with the payment rollouts on the giant social media platform. Notably, the tech billionaire wants the “first and foremost” payment system to be in fiat currency. However, he has commissioned engineers to develop the product to include crypto payments later.
Dogecoiners Cheer As Elon Musk Charts A Bullish Course For Twitter Crypto Payments
#cryptonews #dogecoin #crypto https://t.co/mWDXlLCAUC
— Crypto Whispers (@crypto_whispers) January 31, 2023
Being one of the most famous Dogecoin supporters, the Twitter community assumed DOGE would be included. The move is part of Twitter CEO Elon Musk’s plan to diversify revenue streams and launch an “everything app.”
Judging by the market reaction since the news, DOGE faithfuls support the plan to add a payment option using the meme-inspired coin. DOGE price surged on this report, sparking a series of whale activities with one particular transaction standing out.
Per a recent report, a mysterious whale moved more than $450 million tokens, worth at least $40.5 million. The transaction cost them only 1.01 $DOGE in transaction fees, which means they paid $0.09 to move such a colossal chunk of tokens.
450,000,000 $DOGE ($40,536,900 USD) was transferred from a #Top20 wallet to an unknown wallet.
Fee: 1.01 ($0.09 USD)
Tx: https://t.co/tvk25UbMcA#DogecoinWhaleAlert #WhaleAlert #Dogecoin #CryptoNews
— Ðogecoin Whale Alert (@DogeWhaleAlert) January 31, 2023
Whale monitoring service Dogecoin Whale Alert was the first to spot the transaction, pointing out that the funds moved to an unknown wallet from one of the largest $DOGE wallets on the network.
In another citing, Musk has advocated for fast-food giant McDonald’s to accept DOGE as a payment method.
I will eat a happy meal on tv if McDonalds accepts Dogecoin
The initial offer to McDonald’s followed a crypto market sell-off that saw the fast-food giant make fun of the crypto sector with a tweet asking the crypto Twitter community how they were doing after the sell-off.
DOGE Price Eyes 25% Move From An Ascending Triangle Pattern
DOGE was hovering at $0.98 on the daily chart, trading with a negative bias as bears tried cutting back some of the gains made during the Tuesday relief rally. With decreasing volatility, the price action formed an ascending triangle, as shown in the chart below.
DOGE/USD Daily Chart
A break above Dogecoin’s immediate resistance at $0.1 will pave the way for gains eying $0.11. The formation of ascending triangle pattern added credence to the anticipated bullish outcome. Upon validation, the DOGE price would climb the ladder to confirm a possible 25% move to $0.1154.
Also supporting the positive, optimistic outlook in DOGE price is the moving average convergence divergence (MACD), which indicates that more buyers than sellers were in the Dogecoin market. The price was also sitting on strong support downward, offered by the 100-day Simple Moving Average (SMA) at $0.0878.
On the downside, if selling pressure increases, the DOGE price could drop to lose key support offered by the SMAs and the lower boundary of the pattern formation. In such a case, possible levels for congestion would be the 50-day SMA and 200-day SMA at 0.0797 and $0.0762, respectively. The relative strength index (RSI) at 61 and moving downwards showed that buyers were booking early profits, probably spooked by the recent whale activity sending millions of dollars’ worth of DOGE to an unknown wallet.
However, investors are advised to watch for a possible death cross that could occur if the 50-day SMA cross below the 200-day SMA, as this would indicate the beginning of a significant downtrend. In such a scenario, the immediate logical targets for DOGE price would be $0.0679 and $0.0591, respectively.
Nevertheless, DOGE holders remain bullish on Musk’s intention to enhance Twitter capabilities by adding payment features to the social media app. As the tech billionaire applies for a license to approve Twitter as a payment app, the Dogecoin community expects DOGE’s addition as a payment alternative on the social media platform.
Other experts have supported the bullish thesis for DOGE price, including a pseudonymous analyst known as Smart Contractor on social media who accurately called Bitcoin’s 2018 bear market bottom above $3,000. In his latest insight, he says, “while the DOGE/USD trading pair looks like a “hot mess,” the DOGE/BTC pair looks gearing up for a revenge pump of probably 100% or more.”
admittedly, doge/usd looks like a hot fucking mess to my eyes but $doge/btc OTOH looks gearing up for a revenge pump of probably 100% or more.
would be negligence on my part if i did not have a bag of this. pic.twitter.com/v1TH11VXP5
— Bluntz (@SmartContracter) January 31, 2023
Noteworthy, Smart Contractor’s June 2018 prediction of the bear market that saw the Bitcoin price drop from a then-all-time high of around $20,000 would end with the coin trading at $3,200, was nearly accurate, as BTC hit the target in December the same year.
Another pseudonymous cryptocurrency analyst, Rekt Capital, also suggested DOGE could record a price breakout rally, catapulting the meme coin above its current levels after it underperformed other meme-inspired cryptocurrencies in the most recent bull market.
$DOGE is now testing the top of the Falling Wedge, trying to challenge for a breakout#DOGE #Crypto #Dogecoin https://t.co/ivz21BbQzA pic.twitter.com/MYPbTndOTe
— Rekt Capital (@rektcapital) January 22, 2023
Remarkably, most DOGE holders remain in a profit state, despite a prolonged bear market in the crypto sector that has seen many digital assets plunge in value.
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