Dogecoin Rises after Elon Musk’s Tweets

DOGE/USD Analysis

The prolific CEO of Tesla Motors Inc and Twitter, posted earlier today a tweet that shows his dog as the new CEO of the social networking platform, which resembles the dog depicted at Dogecoin's logo [1]. Back on Sunday, Mr Elon Musk was seen seating next to media mogul Rupert Murdoch, during the US NFL SuperBowl. When asked by a Twitter user what the two were talking about, he replied "Dogecoin" [2].

Mr Musk who is a known and vocal supporter of cryptocurrenies and Doge in particular, took over Twitter in late October, after a months-long saga [3]. He seems to be open to the idea of digital payments on the platform and last year he had even suggested the use of Dogecoin for paying Twitter's subscription service [4].

DOGE/USD is helped this week by these references and gains around 3% today, reclaiming the EMA200 (black line). This allows it to look towards 0.9850, but we are cautious about a greater advance towards and beyond 1.1124.

Despite the current upbeat mood, the altcoin runs a bad month and renewed regulatory scrutiny of the broader crypto industry poses headwinds for digital assets.

The US Securities and Exchange Commission (SEC) cracked down on staking last week, forcing crypto exchange Kraken to halt its staking-as-a-service program and pay a $30 million fine [5]. On Monday, blockchain firm Paxos said it will stop minting stablecoin BUSD, in line with instructions from the New York Department of Financial Services (NYDFS) [6]. The company also said that it had received notice from the SEC, that the regulator is considering action alleging BUSD is a security [7].

Given this unfriendly environment, DOGE/USD is vulnerable to 0.0652, although a strong catalyst would be required for further decline that would test 0.4900.

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Nikos Tzabouras

Senior Financial Editorial Writer

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 14 Feb 2023 https://twitter.com/elonmusk/status/1625695877326340102

2

Retrieved 14 Feb 2023 https://twitter.com/elonmusk/status/1624986889391407106

3

Retrieved 14 Feb 2023 https://www.sec.gov/ix

4

Retrieved 14 Feb 2023 https://twitter.com/elonmusk/status/1512954808394731521

5

Retrieved 14 Feb 2023 https://www.sec.gov/news/press-release/2023-25

6

Retrieved 14 Feb 2023 https://paxos.com/2023/02/13/paxos-will-halt-minting-new-busd-tokens/

7

Retrieved 29 May 2024 https://paxos.com/2023/02/13/paxos-issues-statement/

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