Understand why Dogecoin’s price might rise by 50% in a few months. Three market occurrences imply that Dogecoin (DOGE) might increase by at least 50% by September 2022. The first of these is Elon Musk’s recent announcement of a takeover of Twitter.
Elon Musk’s takeover of Twitter
Elon Musk’s $44 billion takeover bid for Twitter was accepted by the platform last week. In addition, Musk has stated that he intends to accept DOGE as payment for Twitter’s subscription services, in accordance with his earlier recommendations to the company’s board. The price of Dogecoin has risen in response to this potential.
Noelle Acheson, Head of Market Insights at Genesis Global Trading, stated that the spike in the price of Dogecoin is mostly due to speculation. Indeed, Musk has yet to announce whether or not he will add the option to purchase this cryptocurrency on Twitter.
DOGE prices increased by roughly 20% on the same day after Musk announced his takeover of Twitter on April 25. Furthermore, the number of Google Trends searches for “buy Dogecoin” increased by approximately 400% that day.
DOGE also had its greatest transaction volume since March 24, totaling $2.59 billion.
According to CryptoWallet, “Online interest in buying Dogecoin spiked to roughly four times the typical one-day volume as a result of Musk assuming full ownership of Twitter.”
DOGE looks to be following a falling pattern since May 2021, implying an upward turnaround in the future months.
Descending wedges are formed when the price tends to fall inside a range indicated by two trend lines that drop and converge—a support line and a resistance line. Because the two lines are converging, the falling wedge pattern must finally come to an end. It is referred to as a terminal model.
DOGE increased 1,690% between February 2021 and May 2021, reaching a high of $0.74. As the cryptocurrency markets became crowded and the price of Bitcoin reached ATH, the price of Dogecoin plummeted. DOGE fell by 85%.
Following that, the wedge drew a series of three lower highs and lower lows. The development of a falling wedge is suggested by connecting these tipping points with two trendlines. According to technical analysis, the breakout of such a wedge can cause prices to climb by the maximum distance between the two trendlines—the distance between the first high and the first high. The rocker is low.