DOGE Rallies After Musk Tweet, Will the Price Jumpy to 20 Cents

On Monday, October 31, Elon Musk shared a Halloween tweet of his Shiba Inu pet dog wearing a Twitter t-shirt. It was clear that Musk was teasing the changes of getting Dogecoin (DOGE) very soon to the Twitter platform.

Elon Musk’s tweet was enough to pump DOGE by another 15% pushing it above $0.14. Over the last week, Dogecoin has entered a strong rally with Elon Musk acquiring Twitter in a $44 billion deal. The world’s largest memecoin is trading at 140% gains on the weekly chart.

On-chain data provider Santiment has come up with clear proof that the Twitter news was the only reason behind the DOGE price rally. Last week, the DOGE price reached 15 cents and retraced later. However, Musk’s tweet on Monday pushed it once again to this price level.

Santiment further explains that just like the address activity, the Dogecoin trading volume has seen similar divergence.

Furthermore, Santiment explains that the Dogecoin-related social sentiment in the market is pretty strong in the market. It added:

A classic picture of big social volume spike marking a potential top, plus sentiment is going higher and higher, meaning people are very positive in their DOGE-related statements. DOGE and related words have been holding top5 of our social trends for the last 4-5 days.

Will DOGE Price Reach $0.2?

It is clear that DOGE has been rallied based on the Twitter news over the last week. So, if any positive developments around the same come or Musk makes an official announcement with Dogecoin payments on Twitter, it would be an easy 33% rally from here onwards.

Note that with the recent explosive move of Dogecoin, we could expect strong volatility going ahead. As per the Elliot wave analysis, Dogecoin is currently transitioning from the second wave to the third wave. This could be the biggest spike for DOGE in this growth cycle.

But, the catch is that this analysis is only valid when the second wave is corrective. After the second wave, DOGE didn’t enter a short-time correction which would cool down the asset from being overbought.

As the third wave is strongest in Elliot’s analysis, DOGE would require massive inflows from investors to rally further.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.