Elon Musk intervened once more to save the trembling Dogecoin, which had been trading in a prolonged bearish pattern for a considerable amount of time. The Tesla CEO earlier offered a striking $44 billion deal to take over the company, mainly to build a platform that supports “free speech.”
However, the world’s richest person backed out of the deal after only a few months, claiming that the company had misrepresented the prevalence of spam or bot accounts on the platform. This impacted the share value of Twitter, which dropped more than 2% within 24 hours of the announcement. While the legal proceedings are underway, new rounds of the billionaire’s proceeding with the purchase have emerged.
Buying Twitter is an accelerant to creating X, the everything app
— Elon Musk (@elonmusk) October 4, 2022
It is interesting to note that even though the rounds of acquisition were widespread, the price of DOGE remained unaffected. However, the price spiked by more than 8% after the Tesla CEO proposed to buy Twitter at the originally agreed price. Twitter further decided to drop the lawsuit against the billionaire while the trial was set to begin in Delaware in less than 2 weeks.
The Dogecoin price not only spiked high but also broke above the multi-year trend line, which it has maintained for more than a year.
The DOGE price sustained above the support at $0.05 for quite a long time. Moreover, the bearish descending triangle flashed the possibility of a price marking the lows below $0.04. However, the recent spike dragged the price above the bearish captivity, signaling the revival of a bullish trend.
It had made several previous attempts to break the pattern, but each time had ended in a sizable pullback. At the moment, technical indicators such as the RSI and MACD are pointing north, while the price has been trading around recently gained levels for a few days. This shows that the bulls are currently in a good position and may uplift the price in the coming days.
Market participants also think that Elon Musk’s plan to purchase Twitter could be very positive for Dogecoin and the larger markets because it opens up the possibility of integrating the payment system. Following the rounds of acquisitions, Twitter shares also rose by nearly 12%, but experienced a slight pull back later.
The move by Tesla’s CEO has induced significant bullish momentum in the entire crypto space, with Bitcoin prices remaining above $20,000. However, the bearish influence cannot be completely eliminated until prices rise above their respective pivotal resistance levels.
Additional Read: Dogecoin Price Prediction