Dogecoin, a popular dog-themed meme coin, surged nearly 12% on Saturday as word spread about the newly minted meme coin. Xpayment Twitter account (aka X). This is the highest daily gain for a meme coin since April 3, 2023.
excitement around @xPayment Despite the lack of posts and no confirmation of the planned payment feature from Twitter or owner Elon Musk, the account is just another example of the speculative nature of the cryptocurrency market.
Elon Musk has previously stated his intention to turn But traders are eagerly anticipating Dogecoin’s integration into Musk’s business ecosystem, including potential applications for advertising and other services on social media platforms.
Speculation surrounding DOGE and Twitter led to a 16% rise in the price of Dogecoin on Saturday, with the coin reaching a weekly high of $0.09, according to CoinGecko. The surge cooled throughout the day and Dogecoin closed at $0.0877, just short of its 12% daily gain.
After the surge, the coin cooled down as usual and started correcting its trend throughout the weekend. On Monday, the coin fell to a low of $0.081, but bounced back to $0.085. That’s still up 7% since Friday and still high enough to be above the weekly average.
However, Dogecoin’s surge still falls short of the $0.1 it achieved on its 10th anniversary last year. Initially created as a joke, Dogecoin gained popularity despite its humorous origins. Musk’s collaboration with Dogecoin developers to improve the coin further highlights the coin’s transition from meme to mainstream cryptocurrency.
Technical analysis shows mixed feelings surrounding the future of Dogecoin. An exponential moving average (EMA) indicates a bearish near-term outlook because short-term prices are below long-term prices. However, other indicators suggest a bullish rebound is possible. The Average Directional Index (ADX), which measures how strong a trend is, points to a weakening of the current bearish trend, which could lead to market stabilization or a potential reversal.
Elon Musk, known for his influential tweets about meme coins, has had a huge impact on Dogecoin’s price movements. His previous endorsements and speculative tweets led to a significant surge in the value of Dogecoin. For example, Musk’s hint of integrating Dogecoin for in-store payments for X and Tesla products previously led to a 22% price increase.
And his previous tweets, serious or otherwise, have routinely rocked markets, influencing the prices of more serious cryptocurrencies like meme coins and Bitcoin itself.
Editor: Andrew Hayward
