Dogecoin Upbeat after Friday’s Boost from Elon Musk

Elon Musk & Doge

Mr Elon Musk is rather vocal around Cryptocurrencies and seems to have a soft spot for Dogecoin in particular, a topic that we have covered often. The CEO of Tesla Motors Inc. holds Doge, as per his tweet form March, where he had stated that "I still own & won't sell my Bitcoin, Ethereum or Doge fwiw". [1]

Moreover, Dogecoin is acceptable as a form of payment for Tesla merch and late in Friday, mr Musk took a step further, announcing over Twitter that the crypto will soon become acceptable for merchandise of his spacecraft company, SpaceX as well.

In particular, Mr Musk tweeted that "Tesla merch can be bought with Doge, soon SpaceX merch too", sending DOGE/USD higher. [2]

Dogecoin & Twitter

The popular altcoin had been supported, as Mr Musk had begun to make public his potential interest to buy Twitter in late March and the news of his 9.2% stake is the firm, a few days later. Since then Mr Musk has proposed many changes in regards to the microblogging and social platform, which included a suggestion for payment in Doge for the subscription service. [3]

Tesla's CEO went on with a bid to acquire Twitter and take it private, with the two sides coming to an agreement in late April [4]. Later on however, doubts over the deal begun appear, with Mr Musk putting it "on hold" over a spat around the platform's fake/spam users. [5]

Furthermore, the last couple of months have been rough for cryptocurrcies, with FXCM's CrytpoMajor Basket, losing around 30% in May at the time of writing. The Musk-Twitter relationship had partly insulated Doge from factors that weighed on other Cryptos, but could not escape the broader rout in May and loses around 35% this month at the time of writing.

DOGE/USD Analysis

The altcoin builds on Friday's rise and trades with profits today, hoping to pause its recent losing streak that had led to 2022 lows earlier in the month. Given today's upbeat mood, DOGE/USD may be able to push for 0.1055 and the EMA200, but will likely need sustained improvement in sentiment for closes above it that will pause downside risk and could allow it to tackle 0.1268.

Below the EMA200, broader bias remains on the downside and the cryptocurrency is vulnerable to new 2022 lows towards 0.0523, but steeper decline does not seem that ease at this stage.

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 30 May 2022 https://twitter.com/elonmusk/status/1503222294277197829

2

Retrieved 30 May 2022 https://twitter.com/elonmusk/status/1530209049261658112

3

Retrieved 30 May 2022 https://mobile.twitter.com/elonmusk/status/1512954808394731521

4

Retrieved 30 May 2022 https://www.prnewswire.com/news-releases/elon-musk-to-acquire-twitter-301532245.html

5

Retrieved 27 Jun 2022 https://twitter.com/elonmusk/status/1525049369552048129

Disclosure

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}