Elon Musk buys Twitter, DOGE market cap jumps by $2 billion

NEW DELHI (CoinChapter.com) — Dogecoin market cap gained $2 billion in an hour as news of billionaire Elon Musk finally acquiring social media giant Twitter hit the wire. Elon bought Twitter for $44 billion, or $54.2 per share, Twitter announced after a meeting with its shareholders.

Musk, a self-described “free speech absolutist,” had been critical of Twitter’s policies for some time now and also had some ideas for improving the micro-blogging platform. For example, in some polls, he had asked his followers if they wanted an edit button useful or if Twitter should open-source its algorithm.

Another issue that Musk highlighted was the presence of crypto scammers on the platform. He criticized Twitter’s NFT profile picture decision, calling it annoying that the social media platform focused on profile pictures while “crypto scammers are throwing a spambot block party in every thread.”

Also Read: Dogecoin rallies as Elon Musk joins Twitter board of directors.

After successfully acquiring Twitter, the Tesla CEO shared a screenshot of an earlier tweet where he described Twitter as the “digital town square.”

After the announcement, Dogecoin prices broke out of a 5-day long downtrend to register a 39% intraday jump between low ($0.123) to high ($0.171) levels. Dogecoin, which enjoys immense favor from Musk, saw its market cap reach over $22 billion on Monday after Twitter was sold to Elon Musk.

Musk Buying Twitter Sends DOGE Flying

However, bears moved in to book profits, paring DOGE’s gains. Elon Musk’s favored meme coin, DOGE, sped past its 50-day moving average (yellow wave) and 100-day MA (purple wave). However, Dogecoin’s 200-day MA (green wave) rebuffed the token’s uptrend.

DOGE price currently faces resistance near $0.166, a price level that has rebuffed DOGE uptrends several times since Jan 19. However, if bulls manage to flip immediate resistance, Musk’s favorite meme token will challenge resistance near its 200-day MA (green wave) at $0.177.

Also Read: Dogecoin eyes 160% breakout as DOGE paints a bullish technical pattern.

A sustained bull run might see DOGE prices reach $0.19 before corrections pare gains. The $0.19 price level previously acted as a resistance between Dec 4, 2021, and Jan 14, 2022.

Meanwhile, trend-based momentum indicator MACD charted a bullish crossover for DOGE on Apr 25.

In detail, a bullish crossover occurs when the MACD line (difference of 12-day and 26-day EMA) moves above the MACD signal line (9-day EMA of MACD). As a result, traders usually consider the chart pattern as a buy signal, helping boost the asset’s prices.

However, if bears continue to sell, DOGE prices might fall to immediate support near $0.15. A market-wide sell-off would push Dogecoin, whose price action seems attuned to Musk’s tweets, to test support from its 100-day MA (purple wave) near $0.139.

Finally, DOGE prices have support near their 50-day MA (yellow wave) at $0.13.

At the time of writing, DOGE was trading at $0.161, up 21.5% on the day, with the Dogecoin market cap at $21.35 billion.