Dogecoin leads cryptocurrencies rally after Musk's 9% Twitter buyout
Dogecoin (DOGE), Elon Musk's favorite cryptocurrency, gained a boost that pushed it to a nearly two-month high after the Tesla founder bought a 9.2% stake in Twitter (a $2.8 billion stake) according to a U.S. Securities and Exchange Commission (SEC) filing released Monday, making him the company's largest shareholder.
The cryptomeme, that repeatedly received support from Musk via Twitter, is up nearly 6%, above $0.1530, after reaching $0.1553 following the announcement, its best price since Feb. 9th. As for the rest of the market, Bitcoin maintains the consolidation of recent days, trading in a narrow range between $45,000 and $47,000 and the rest of the altcoins are in positive territory. Total capitalization remains at $2.165 trillion.
Bitcoin had a good weekend, recovering from the sell-off suffered since breaking a key resistance level and touching 2022 highs above $48,000. "Recent selling has found some support around $44,000, but it is still struggling to find momentum as it approaches last week's high. It could still build on that breakout, but it may be more difficult than we've seen in the past given the current environment," warned Craig Erlam, analyst at Oanda.
TWITTER AND DOGECOIN
Analysts speculate that, given Musk's relationship with Dogecoin and the fact that many of Tesla founder's followers are supporters of the meme currency with the icon of a Shiba Inu dog, users are hoping that Elon Musk will push the social media platform to adopt this token as a payment option and further integrate the currency. It actually already integrated DOGE as a form of payment for Tesla merchants, after which its value shot up 15% to $0.20.
The meme coin could see a significant uptrend in the coming days if the bulls manage to feed above the 200-day SMA price. Recent Musk-related developments could be a major factor for an upside, depending on further developments and announcements, and as the meme coin registers a high correlation with larger currencies, Bitcoin's price movement will also be important for future action.