Dogecoin Rallies as Elon Musk Takes Over Twitter
DOGE/USD Analysis
The prolific CEO of EV giant Tesla Motors Inc and spacecraft maker SpaceX, has now become the sole director of Twitter, according to an SEC filling from Thursday [1] - a day after he had entered the firm's headquarter carrying a sink and tweeting "Entering Twitter HQ – let that sink in!". [2]
This ends (i hope) the saga that had started back in April, when mr Musk had disclosed a stake in the microblogging site. The two sides had agreed on a buyout deal, but Tesla's CEO terminated it, over a dispute regarding fake/spam accounts. Twitter sued to enforce the deal and just before the trial was due to begin, Mr Musk had another change of heart, which eventually led to the completion of the acquisition.
Mr Musk often comments on Cryptocurrencies, with Dogecoin often being one of them. Earlier in the year, he had suggested its use for paying Twitter's subscription service [3], while already been accepted as a form of payment for merchandise in other companies of his.
Today he also tweeted a picture of a dog in Twitter clothing, creating further buzz over the altcoin [4]. As a result, DOGE/USD surges this week, up around 70% from Friday's close, at the time of writing. This marks an impressive turnaround from this year's collapse.
This brings the April highs (0.1802) in the spotlight, with the next resistance provided by this year's highs at the 0.2044-0.2155 region, although fresh impetus will be required for such moves.
Sustained advance however, is not easy as long as the Fed's aggressive rate hike cycle boosts the US Dollar, so Wednesday's rate decision could determine the next leg of the move.
This week's massive surge has created overbought condition and a return back towards 0.900-1.000 would not surprise us, although daily closes below the EMA200 would likely need a catalyst.
In any case, caution is needed due the high volatility and rapid nature of the move, which makes any technical approach hard at this point.
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
| Retrieved 01 Nov 2022 https://www.sec.gov/ix | |
| Retrieved 01 Nov 2022 https://twitter.com/elonmusk/status/1585341984679469056 | |
| Retrieved 01 Nov 2022 https://mobile.twitter.com/elonmusk/status/1512954808394731521 | |
| Retrieved 18 May 2023 https://twitter.com/elonmusk/status/1587297730631696384/photo/1 |
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