Key Takeaways:
- Dogecoin pulls back after a 25% rally.
- Technicals hint at a 65% jump before 2024.
- Musk to implement the long-awaited X.com financial service.
YEREVAN (CoinChapter.com) – Dogecoin (DOGE) traded at $0.07 on Oct 27, after a 3% intraday correction. The move came after a Bitcoin-led 25% pump in the previous week. Notably, the jump could continue in Q4, based on bullish technicals, and fundamental news.
More details below:
DOGE in a falling wedge
The memecoin has traded in a setup called the ‘falling wedge’ since January 2023, which locked the price action between two converging down-sloping trendlines with an instrumental mid-range.
However, the falling wedge is a reversal pattern and forecasts a breakout equal to the maximal wedge height if the asset can breach the upper trendline. For Dogecoin, the target would stand at $0.11, or 65% higher than the current value.
As of Oct 26, DOGE retested the resistance, unable to break above it. But if the bulls double down, Dogecoin could see a new yearly high.
Meanwhile, the demand for DOGE could also grow in the coming months, if X.com (former Twitter) implements the long-advertised plan to make Dogecoin the platform’s go-to currency.
X to Implement Full Financial Service by 2024
Elon Musk, the head of Tesla, SpaceX, and X.com, reiterated his intentions to implement a full financial service on the social media platform by 2024. To be clear, as of late October, the entrepreneur has NOT approved Dogecoin as a payment medium.
Musk has mentioned the canine memecoin in the X.com payment context in the past. Exactly a year ago, on Oct 25, 2022, Musk proposed to launch a Dogecoin-based wallet for then-Twitter.
However, the CEO backtracked in December 2022, toying with the possibility of launching a new Twitter coin and not using Dogecoin. The rollercoaster continued with Musk reintroducing the DOGE-based payments idea in January 2023.
Dogecoin investors follow Musk’s every move
The Dogecoin token price jumped up and down on each Musk tweet about the payment platform and, frankly, any other tweets about DOGE, or his pup Floki. As seen on the chart below, the news on Oct 25, 2022, sent Dogecoin investors into a frenzy and the DOGE price into a 170% rally.
Is the eccentric entrepreneur serious about using Dogecoin for X.com payments? Who knows! Once investors believe he is serious, the coin will pump in the short term on hype alone.
However, if Musk actually implements the payment system, the organic demand for Dogecoin might rise, along with its use cases and mainstream acceptance. Thus, the 65% pump before the year’s end appears possible if X.com greenlights the full financial service system.
