Twitter shares have increased more than DOGE prices in response to the news; could this indicate that cryptocurrencies are trailing stocks and that DOGE prices will increase?
The closing price of Twitter’s stock on Tuesday was $52, up 22%. Elon Musk plans to purchase Twitter for $44 billion, or $54.20 per share.
Pricing Prediction for Dogecoin
At the time of publication, Dogecoin was trading at about $0.065, having reached an intraday high of slightly more than $0.066.
Dogecoin is still down roughly 92% from its all-time high of $0.74, which it reached just before Elon Musk discussed the well-known meme coin on Saturday Night Live in May 2021.
Dogecoin, the biggest meme token in the cryptocurrency market, still commands a $8.7 billion market capitalization despite its 18-month bear market.
Shiba Inu, its closest rival, has a market cap of $6.3 billion, while Tamadoge, a new meme coin, recently increased 1,870% from its token presale to reach a market cap of over $150 million, surpassing Baby Doge Coin and Dogelon Mars.
Dogecoin might find it difficult to recover because of its large market cap and status as an inflationary asset. Every tweet or news item from Elon Musk that had previously boosted the price of Dogecoin, such as Tesla accepting DOGE for merchandise purchases and later SpaceX, has completely reversed.
Conservative investors might want to hold off to see if this most recent Dogecoin price increase will actually lead to a new uptrend.
A high-timeframe (HTF) chart would then display higher lows and higher highs, according to technical analysis. The market structure would change to bullish on the weekly chart if the DOGE price can begin closing candles above $0.089 at that point.
TraderSZ, one of the top cryptocurrency traders on Twitter, opened a long position last week with that level in mind when Dogecoin was trading at $0.06.
