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Top Crypto News Today: Dogecoin rallied over 35% as Elon Musk’s Twitter deal completion edges closer

Over the past three days, ever since the news broke that Tesla founder, Elon Musk – also referred to as ‘Doge father’ – would be completing his $44 billion buyout of social media company, Twitter, Dogecoin has gone into a rallying frenzy. In fact, in the past three days alone, DOGE price has rallied over 35%!

And Musk too hasn’t been shy to announce his foray into the social media business, to make the platform fair and unbiased. And his recent tweet featuring him carrying a sink into Twitter headquarters has taken the internet by storm.

And thanks to the fact that Musk has always stood by Dogecoin, even in the hardest of times, and news of a Dogecoin integration into the Twitter platform has resulted in the massive rally in the largest memecoin by market capitalisation.

The deal is set to be closed on Friday, 28 October, 2022 and we could possibly see this rally in Dogecoin continue until speculations are rife about this possible integration of DOGE into Twitter the way he takes DOGE payments in various products offered by his other company, Tesla.

Read more: Can this new development help trigger a rally in DOGE price?

Dogecoin technical overview

DOGE/USD | Source: Tradingview

From a technical point of view, things look great for Dogecoin price in the immediate short term. In one fell swoop, DOGE price has broken out of its accumulation zone (marked in grey) and even out of the 50 and 200 day moving averages. All three of these indications suggest a good build up of positive momentum, especially in an environment when the rest of the crypto market is improving too. We have Bitcoin which is trading just shy of $21,000 mark and Ethereum which has crossed well above the psychological mark of $1500 and sustaining above it. We are even seeing the overall crypto market cap over the $1 trillion zone and thus a broad base recovery will definitely help is Dogecoin scaling new highs.

However, what must also be noted is that, due to this major surge in DOGE price, the Relative Strength Index for the memecoin has entered into the overbought territory. Typically, whenever prices enter into the overbought territory on the RSI, it is generally followed by some amount of correction or at the very least, a halt to the rally for a period of time. This is because a rally in the overbought zone becomes unsustainable after a certain point in time and hence, a gradual three steps forward, one step back move in the pattern that is followed in the market.

Additional Read: Dogecoin Price Prediction

Bullishness abound

Apart from technicals, a few on-chain metrics for Dogecoin also signal positivity. One of the most recent ones being, Dogecoin’s hashrate which recently touched a new all-time-high. But why is this important? Well, hashrate is a good indicator of a network’s security as a higher hashrate signifies that there are more number of miners verifying transactions on the blockchain. Hence, this rise in hashrate for Dogecoin can be considered to be a very positive sign.

So if rumours turn out to be true and the overall crypto market recovery continues in a steady manner, we can expect the largest memecoin by market cap to do reasonably well in the future.

Prices as of 27 October, 2022.

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