Crypto News

Dogecoin jumps 21 percent on Elon Musk’s Twitter promotion

Dogecoin DOGE Elon Musk Bitcoin
Image by cp17 from Pixabay
  • 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.

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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.

Dogecoin in a descending channel. Source: DOGEUSD on TradingView.com
Dogecoin trading in a descending channel. Source: DOGEUSD on TradingView.com

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.

Dogecoin against BTC. Source: DOGEBTC on TradingView.com
Dogecoin against BTC. Source: DOGEBTC on TradingView.com

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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.

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.

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.

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Lilit Chichyan

Lilit is an enthusiastic writer, skilled in 3 languages, and interested in writing about the tech world, trading, art, and science. She also has a background in psychology and marketing, which helps deliver the right message to the target audience. Lilit is creative and fast and has the experience of writing for both big marketing companies and small websites and blogs.

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