Dogecoin’s (DOGE) price surged to its highest levels in two months as traders believed in the possibility of Twitter launching a crypto wallet given the ongoing developments.
On October 27, DOGE’s price increased to £0.069. Two days after claims surfaced that Twitter is developing a wallet prototype that handles cryptocurrency deposits and withdrawals, the price increased by about 40%.
The link between Twitter and DOGE is Elon Musk. The CEO of Tesla and SpaceX won the bid to buy Twitter for £37.9 billion earlier this year. He later weighed the idea of accepting DOGE as payment for Twitter Blue subscriptions on April 11.
DOGE fell as low as £0.043 in June as Musk tried to back out of the deal, citing his reservations about Twitter’s user counts. The memecoin had earlier rallied 30% to £0.15.
On July 12, Musk was sued by Twitter, which ultimately led the court to decide in Twitter’s favour. Chancellor Kathaleen McCormick, the judge presiding over the legal dispute, rejected Musk’s requests to delay the trial, emphasising that the deal should to be finalised by 10 p.m. on October 28.
Musk Wednesday changed his Twitter bio to “Chief Twit,” and that same day, he visited Twitter headquarters. That increased hopes that he would close the deal by the deadline, enabling DOGE to become an essential component of the microblogging service.
Meanwhile, DOGE’s rebound appears to be reaching its limits as its price approaches a significant resistance confluence.
A multi-month descending trendline, the 50-3D exponential moving average, and a horizontal level around £0.069 make up the confluence of three resistance levels on the three-day chart.
Given that it immediately corrected after testing these resistance levels, the likelihood that the coin will continue to decline is high. The ascending trendline that has been a support in recent months is close to its downward target.
In Q4 2022, DOGE’s price could drop to £0.052, or about 20% less than it is right now as a result.
On the other hand, should DOGE successfully break through the resistance confluence, its next upside target may be the 200-3D EMA near £0.095, a 50% increase from current price levels.