Attributed to Elon Musk's rebranding of Twitter as X, Dogecoin price defied the uncertain crypto market to capture a bullish wave above $0.08 last week. The leading meme coin initially consolidated in a tight range with support at $0.06 and resistance at $0.072.
Twitter X could trigger Dogecoin price rally!
In July, Twitter owner and Tesla CEO Elon Musk announced his decision to rebrand the microblogging platform as X, a move that would pave the way for the “everything app.”
Musk's weakness for Dogecoin has led investors and industry experts to predict the possibility of this meme coin being adopted as a payment method in X. The scope of the platform may expand to include Bitcoin (BTC), which Tesla adopted for payments, albeit for a short time in 2021.
“Including cryptocurrency payments as part of this ecosystem will be an absolute game changer,” said an expert by CoinDesk. said.
Brian D. Evans, CEO and founder of BDE Ventures, a Web3 startup studio and consulting firm, said he “wouldn't be surprised if (Musk) actually enables payments through DOGE.”
Dogecoin price tends to rise and respond to Musk's tweets and actions on Twitter. It rose tremendously in October when the billionaire acquired Twitter, completing a $44 billion deal.
Therefore, speculation that DOGE is being used to power digital currency payments on X is significantly high and would be a major boost for the token, which has fallen 89.87 percent from its all-time high during the bear market.
Dogecoin price is ready to confirm the breakout!
X could be the platform that takes crypto adoption to the next level, and DOGE could be at its epicenter. But before that, investors may want to consider a potential bullish breakout that is likely to follow a rejection from the July high at $0.0826.
Dogecoin price climbed to $0.0826 as investors took in the X rebrand news. This led to DOGE returning to test the descending trendline support, which many investors saw as confirmation of an uptrend.
Before activating buy orders, traders are looking for a rebound from the descending trendline, a break above the 200-day Exponential Moving Average (EMA) (purple) resistance at $0.0752, and a Money Flow Index (MFI) indicating the overbought zone between 80.00 and 100.00. should consider ticking a few boxes, starting with ).
As the Moving Average Convergence Divergence (MACD) has turned bearish with the recently confirmed sell signal, losses could extend to $0.0716, the converging support formed by the 50-day EMA (red) and the 100-day EMA (blue).
While losses are unlikely to continue below this buyer congestion area, if the entire crypto market structure worsens in August, Dogecoin price could move through low liquidity at $0.062 before a significant trend reversal.