Key Takeaways:
- Dogecoin price started recovering from its nearly 7% drop in Aug.
- Rumors of being a payment medium on Elon Musk’s X likely fueled the rally.
NEW DELHI (CoinChapter.com) — Meme-inspired crypto token Dogecoin (DOGE) prices started recovering from their near 7% fall in Aug. However, the DOGE price rally seemed to take cues from speculations and rumors.
Elon Musk had expressed interest in making X (then Twitter) more like China’s WeChat. The Chinese app allows instant messaging and other services, such as food ordering, rides, payments, etc.
Musk shared his vision in a company town hall in 2022, stating that users “basically live on WeChat in China” due to its usefulness.
I think if we could achieve that, or even close to that with Twitter, it would be an immense success.
Elon Musk told his employees
News website Semafor cited unknown sources to claim that X was looking for financial data to build a trading hub inside the X platform. Moreover, the speculation gained traction from X rolling out the “cashtag” feature earlier this year.
The feature shows a live chart when users search for a firm or crypto’s ticker with a ‘$‘ sign, for example, $BTC, $GM, $AAPL, etc.
The feature has been successful, with X revealing that cashtag clicks have grown by 51% since May.
However, Elon Musk refuted the claims of X building an exchange inside X in a reply to a (now deleted) post quoting Semafor’s news. However, the rumor led several users to speculate if DOGE might end up as a payment medium on the exchange.
Additionally, since Twitter’s rebrand, speculation of Dogecoin’s more active involvement with the platform as a payment or reward medium for creators has gone up.
DOGE Price Starts Recovering After Poor Start To Aug
Being a memecoin, DOGE price usually depend on speculation and hype regarding the token, which is likely what pumped prices on Aug 4. However, the gains were minuscule, with DOGE price rising only 2.3% to a daily high near $0.0749 before retreating.
Bears are aggressively defending DOGE’s 200-day EMA (green wave) resistance near $0.0756. Bulls would need to break above the immediate resistance before targeting the resistance near $0.08.
On the other hand, if DOGE fails to start a rally, the memecoin price might drop to the 100-day EMA (blue wave) and 50-day EMA (purple wave) support confluence near $0.072. Moreover, failure of the immediate resistance level could force DOGE price to test the support near $0.069 before recovering.
The relative strength index for DOGE price remained neutral, with a value of 52.57 on the daily charts.
