Dogecoin jumps 21 percent on Elon Musk’s Twitter promotion

• Dogecoin back together with Elon Musk.
• Price advance against USD and BTC
• The 21 percent price jump didn’t release the coin from the binding setup

YEREVAN (CoinChapter.com) – Dogecoin (DOGE) spiked 21 percent in the early European session Friday, reaching $0.22. The jump was once again inspired by the “DOGEFATHER” himself — Elon Musk, who tweeted about the upcoming updates for the meme cryptocurrency.

The billionaire first criticized Bitcoin and Ethereum for slow and costly transactions on the base level and their preference for layer 2 solutions to solve the scalability problem. Meanwhile, he praised Dogecoin for taking the opposite approach and developing the base layer to minimize the transaction cost.

BTC & ETH are pursuing a multilayer transaction system, but base layer transaction rate is slow & transaction cost is high.

There is merit imo to Doge maximizing base layer transaction rate & minimizing transaction cost with exchanges acting as the de facto secondary layer.

— Elon Musk (@elonmusk) July 9, 2021

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Dogecoin technicals

Before the tweet, Doge was primed for more losses, primarily as a descending channel formation clouded traders’ conscience. The formation has been in effect since early May. The lower trendline has been instrumental in providing support and preventing breakdowns. The upper trendline effectively capped Doge’s attempts for a bullish break.

Before the tweet from Mr. Musk, DOGE was headed towards the midrange of the channel (dashed line on the chart above). However, the promotion helped the token reach the resistance once again. The upcoming hours will show if the token can break out of the channel and continue the gains.

The 20-day exponential moving average (EMA-20: blue wave on the chart) and the upper trendline formed a resistance confluence, thereby suppressing the bullish efforts. However, if DOGE manages to reach the EMA-20, it could provide support instead of resistance.

Thanks to the Dogefather’s Tweet, the meme-coin faired well against Bitcoin as well, while the latter consolidated in a descending channel of its own, unable to break the resistance. Nevertheless, Dogecoin gained 11 percent, which shows that traders were willing to hedge their assets in Doge rather than Bitcoin in the promise of greater rewards.

Related: More troubles ahead for KuCoin as KCS crashes 30% in just 24 hours.

Rekindled romance?

The billionaire chief executive has been relatively silent on Dogecoin lately, tweeting more actively on Doge-spawned coins like Baby Doge and Dogecoin Polytopia. However, the tweets didn’t contain any pronounced support. Instead, they were just cryptic enough to confuse the heck out of his followers.

The racy meme on Dogecoin Polytopia, posted on July 2, got a lot of attention. However, as the newborn coin hadn’t gained enough exposure at the time, it wasn’t clear if the post was, in fact, about DOGE. As a result, the price moved sideways without the usual bullish effect.

pic.twitter.com/oGKHhHROQa

— Elon Musk (@elonmusk) July 2, 2021

Now that the CEO is tweeting about DOGE again, his followers are excited to pump the price. They once again flooded the entrepreneur with silly memes, forgetting about the temporary setback.

Everyone got that 1 cool UNCLE . I think ELON got 1 @UncleDogeBSC #UncleDogeArmy. pic.twitter.com/5TBtcWxIVW

— sachin gill (@sachingill6) July 9, 2021

Also read: Bitcoin HODling: What do Realised Cap HODL waves say about it?

The CEO of Tesla was determined to make Dogecoin “the currency of Earth.” Joke or not, Mr. Musk actively tweets about his pet crypto, boosting the price. Despite the recent cold shoulder, he’s back at it, registering green candles on the Dogecoin daily chart.