Dogecoin (DOGE) May Rise Further if it Breaks the Resistance!
Dogecoin was up marginally on Tuesday after the acquisition news of Twitter by Elon Musk on the original terms. The attorney from Musk sent a letter to the Twitter office to buy the company at $54 per share. Within the minute of this news breaking, the DOGE price was up 8%.
Generally, Dogecoin was backed by Elon Musk as a ‘People’s Coin,’ and it got a lot of attention from retail investors and the media. That is why the DOGE price is highly influenced by Elon Musk. He published numerous playful tweets that suggest the long and deeply intertwined history of Dogecoin and Elon Musk.
The buying of Twitter was full of drama and plot twists because when Musk proposed to buy Twitter in May, Dogecoin drove more than 10%, but after that, it took time to resolve all issues about the deal, and DOGE also reacted in the same way. Musk alleged the wrong Twitter users and attempted to cancel the deal. He changed his mind, and the official news was announced this month. As a result, Twitter share and DOGE prices went up more than 5%.
However, it might not be a long-term trend because meme coins are influenced mainly by fresh news, and they did not impact for the long term. The DOGE price was driven based on speculation that Elon Musk might introduce DOGE as a payment method on Twitter. But this is purely speculation, so it might not be sustainable in the long term.
You should not invest only by reading this news. You must do your proper research and analysis before investing and maybe even read our Dogecoin forecast.
When this post was written, DOGE was trading around $0.065. In the last four months, Dogecoin’s price has been consolidating between $0.07 and $0.055. Though the candlesticks are forming around the upper range of the BB, the recent red inverted hammer candle suggests the price will hit the baseline of the BB around the level of $0.06.
We do not suggest meme coins for long-term investment because they are influenced by community sentiment and social media news. The weekly candlesticks are forming in the lower Bollinger Bands, and the RSI is neutral at around 40. If you are active on social media, you can invest in Dogecoin, but you should invest in a safer asset for the long term.