More importantly, the recent rumors may offer new hope for the future of this cryptocurrency. Tesla founder Elon Musk’s acquisition of Twitter has drawn investors’ attention to Dogecoin. The tech billionaire previously voiced support for DOGE in 2021.
This completed deal gives hope that Dogecoin will be integrated into this social media platform. According to recent reports, Musk may be eyeing development in that direction.
Elon Musk has stated that he wants to support payment methods on Twitter and TWTR that could reach 1 billion monthly active users within the next 18 months. If Dogecoin becomes a payment method on this social media platform then it means that 1 billion users can use this currency!
However, there has been no official confirmation of plans to integrate Dogecoin as a payment method on Twitter. However, this expectation would not be too far-fetched considering Musk’s support for this meme coin. More importantly, if Twitter does indeed implement such cryptocurrency adoption, this will help DOGE reach hundreds of millions of people.
Dogecoin’s adoption at such a scale has the potential to trigger a strong wave of demand and facilitate DOGE to expand more utility. This is one of the main reasons why DOGE investors are suddenly interested in the coin meme again, especially since DOGE has plummeted in price in 2022.
Dogecoin Current Needs Assessment
Dogecoin’s price action has risen 47% from last week’s bottom to its latest peak earlier this week. Recently, DOGE surpassed the 50% level of the Relative Strength Index (RSI). At the same time, the meme also broke above the 50-day moving average, as the bulls regained relative strength.
Since there is no official confirmation of Dogecoin’s integration on Twitter, the current bull run is highly speculative. But can the bulls maintain the rally until DOGE is oversold? DOGE’s Mean Coin Age indicator has recorded continuous gains over the past 20 days or so. This result confirms that many buyers have chosen the HODL strategy. Despite this, most of those who entered the market in November did not make a profit according to the Realized Market Capitalization HOLD Waves indicator. This may be because most investors have engaged in the correct bearish correction in the first and second week of November.
The above results indicate that Dogecoin is gradually regaining confidence from investors. However, this does not necessarily mean that DOGE will continue to rise in price. The latest rally may prompt investors to “catch the bottom” of last week to take profits. Looking at DOGE’s supply distribution it can be seen that there has been some selling pressure from addresses holding between 1 million and 10 million coins. This confirms the ongoing short-term profit-taking move and it may hold back the current rally.
Dogecoin continues to record some positive gains, possibly due to other top whales continuing to accumulate. The short-term uptrend could turn into a big rally if Elon Musk confirms Dogecoin integration on Twitter. On the other hand, selling pressure can “erode” the current gains, especially if the market continues to weaken.