Dogecoin (DOGE) may have seen a major boost after Elon Musk floated the idea of bringing it into the Twitter payments ecosystem. The meme coin even surged by around 8% after the news, but it has since fallen sharply from that pump. But what does the future hold? Here are some developments of note:
After the initial Elon pump, DOGE fell by almost 16% in 24 hours
The coin did however manage to remain above its 100-day SMA
Musk’s statements are unlikely to have any material effect on the price action
Data Source: Tradingview
Dogecoin (DOGE) -Why Musk’s pump won’t save it?
Elon Musk is one of the most influential voices in crypto and tech. When he floated the idea that Dogecoin could be included as part of the Twitter payments ecosystem, the price surged. Musk is after all the largest shareholder of Twitter. But it turns out this pump was short-lived as investors confronted the technical indicators.
As a result, DOGE fell by almost 16%. But crucially, the coin has managed to stay well above its 100-day SMA of $0.13. This level has proved to be strong support, and it is unlikely DOGE will breach it.
Once the coin consolidates around this price, we expect bulls to push further towards the 200-day SMA. While we don’t think it’s possible to breach the 200 Day SMA in the near term, a short bull run could still be a great win for bulls.
Does DOGE have a future in payments?
DOGE was the most successful meme coin before Shiba Inu. Over the years, the coin has tried to add more utility to its ecosystem and in fact, many have explored it as a possible payment option.
If indeed Twitter is able to adopt it within its payment ecosystem, then DOGE will easily become a mainstream coin with vast implications for the digital economy.