The price of Dogecoin (DOGE) has experienced a surge today, as traders speculate about its potential addition to Twitter’s revamped social media platform, known as “X.” On July 25, the DOGE price rose by nearly 5.5% to reach $0.078, marking its highest level in two months. This increase is part of a larger weekly rally that began two days earlier when Elon Musk rebranded Twitter to X and added the DOGE symbol to his bio. As a result of these developments, Dogecoin has seen a jump of over 11%, mirroring its previous bullish reactions to Musk’s pro-dogecoin statements.
Elon Musk’s announcement of X as an “everything app” with a focus on financial services has led analysts to speculate that he may introduce a DOGE payment option on the platform. This idea has been circulating for over a year, since Musk hinted at it during a social media interaction. David Gokhshtein, the founder of Gokhshtein Media, stated, “Just watch Elon Musk troll everyone by making DOGE the first crypto to be used on the X platform.”
The recent rally in the Dogecoin price has triggered short liquidations worth more than $6 million since July 24, accounting for around 60% of all liquidated positions. Short sellers exiting their positions through buy orders has pushed the price even higher. However, DOGE’s open interest-weighted funding rate has fallen into negative territory, indicating that bears are paying bulls to keep their positions open. This suggests that most derivative traders have turned bearish on the Dogecoin market, despite the ongoing price rally.
From a technical perspective, the DOGE price has entered the breakout stage of its prevailing bump-and-run reversal bottom pattern. This pattern indicates a potential price target of around $0.88, a 15% increase, by September 2023. On the other hand, a bearish scenario could see Dogecoin entering a short-term correction as its daily relative strength index approaches 70, an overbought area. If the price tests the $0.078 resistance level, it may experience a reversal. This resistance level played a significant role in limiting DOGE’s upward movements in March 2023.
It’s important to note that this article should not be considered investment advice or a recommendation. All investment and trading activities involve risks, and readers are encouraged to conduct their own research before making any financial decisions.