The Dogecoin price is up almost 9% today as Elon Musk’s Twitter acquisition is back on the table. Will Dogecoin recover to its 2021 highs though?
Latest Elon Musk SEC Filing
A letter sent to Twitter’s lawyers from ‘the Musk parties’ on the sec.gov website states:
Gentlemen: On behalf of X Holdings I, Inc., X Holdings II, Inc. and Elon R. Musk (the “Musk Parties”), we write to notify you that the Musk Parties intend to proceed to closing of the transaction contemplated by the April 25, 2022 Merger Agreement.
Twitter shares have also pumped on the news, more so than DOGE – could cryptocurrency be lagging behind stocks, and the DOGE price be set to rise higher?
The Twitter share price closed the Tuesday session up 22%, at $52.05. Elon Musk is set to buy Twitter at $54.20 per share, for $44 billion.
Twitter Investor Relations (@TwitterIR) has today confirmed the deal:
Dogecoin Price Prediction
Dogecoin now is trading at around $0.065, having hit an intraday high of just over $0.066 at press time.
Dogecoin is still down approximately 92% from its all time high of $0.74 hit shortly before Elon Musk appeared on Saturday Night Live to discuss the popular meme coin, in May 2021.
Despite that 18 month bear market, Dogecoin still commands a $8.7 billion market capitalization, the largest meme token in the crypto market.
Its closest competitor Shiba Inu has a market cap of $6.3 billion, and new meme coin Tamadoge recently rose 1,870% from its token presale to hit an over $150 million market cap, overtaking Baby Doge Coin and Dogelon Mars.
With its high market cap, and being an inflationary asset, Dogecoin may struggle to recover. Every Elon Musk tweet or news event that previously caused a Dogecoin price pump – such as Tesla accepting DOGE for merchandise purchases, and later SpaceX – has fully retraced.
Conservative investors may wish to wait to see if this latest Dogecoin price rally can really spark a new uptrend.
Fom a technical analysis standpoint, that would mean higher lows and higher highs being printed on a high-timeframe (HTF) chart. On the weekly chart, if the DOGE price can start closing candles above $0.089, the market structure would then flip bullish.
Notably one of the best crypto traders on Twitter, TraderSZ, opened a long position targetting that level last week when the Dogecoin price was $0.06.
From a macro standpoint, little indicates a long term price reversal yet even with the weekly candle up 11.6%. TraderSZ tends to take short term trades within a sideways range.
Is Dogecoin a Good Investment Now?
Every short term Dogecoin pump has been an opportunity for high R:R short in 2022 – even down 92%, DOGE has little utility and an infinite supply so has room to keep declining.
Another noted trader Altcoin Sherpa is now considering a Dogecoin short from the current levels, since this latest Elon Musk related move. His current Dogecoin price prediction is bearish.
As Robinhood CEO Vlad Tenev tweeted earlier this year, Dogecoin fails to compete with a standard debit card transaction as a means of exchange and payment.
One speculation among Dogecoin holders is that once Elon Musk owns Twitter, DOGE could become the social media platform’s ‘native currency’ – however the billionaire is yet to lay out any roadmap for that.
Read our full Dogecoin price prediction post for a closer look at the Dogecoin price history, more TA and fundamental analysis, and some possible bullish forecasts.
Also see our recent Tamadoge price prediction, a potential ‘Dogecoin killer’ which is deflationary with a low fixed supply and strong growth potential, highlighted yesterday in Cointelegraph.
We first reviewed TAMA in our crypto presales section, and since its 18x price rise we have also added additional token presale reviews, including IMPT token.