Dogecoin Jumped on Elon Musk’s Reversal & Offer to Complete the Twitter Deal

DOGE/USD Analysis

Mr Musk is known for his support of cryptocurrenices and seems to have a particular liking to Dogecoin, which his Tesla Motor Company and SpaceX, also accept as a form of payment for merchandise [1]. The Tesla CEO had also suggested its use for paying Twitter's subscription service, just a few days after the acquisition saga had started back in early-April.

The altcoin had benefited from Mr Musk's stake and buyout proposal of the microblogging company and the agreement between the two sides in late April. This deal did not materialize though, as a disagreement over the platform's fake/spam accounts ensued, with Mr Musk eventually terminating the agreement and Twitter suing to enforce it. [2].

Yesterday however, there was another twist to the never-ending saga, since Mr Musk offered to complete the acquisition agreement [3], ahead of this month's court trial and DOGE/USD jumped to the highest levels in over a month.

This sent it above the EMA200 and brings the 38.2% Fibonacci of the August high/September low drop in its spotlight (0.0685), although it will likely need fresh impetus for surpassing it, while 0.0777 looks distant at this stage.

Despite yesterday's rise, we are cautious around its ascending pospects and DOGE/USD comes under renewed pressure today. As long as the rebound is limited below the 38.2% Fibonacci, there is scope for fresh lows (0.551), but further decline towards and beyond 0.0490 has a higher degree of difficulty.

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Nikos Tzabouras

Senior Market Specialist

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 05 Oct 2022 https://twitter.com/elonmusk/status/1530209049261658112

2

Retrieved 05 Oct 2022 https://mobile.twitter.com/elonmusk/status/1512954808394731521

3

Retrieved 24 Nov 2022 https://www.sec.gov/Archives/edgar/data/1418091/000110465922078413/tm2220599d1_ex99-p.htm

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