How the emergence of cryptocurrency payments on Twitter will affect the price of Dogecoin (DOGE)
Date: 2023-09-01 Author: Karina Ziganova Categories: BLOCKCHAIN, CRYPTO PAYMENTS
The price of Dogecoin (DOGE) jumped almost 10% after Twitter received a license for cryptocurrency payments from the state regulator of Rhode Island.
On Monday, the media reported that the social platform Twitter, owned by a well-known supporter of Dogecoin, Elon Musk, received a license for cryptocurrency payments. Now market participants are actively speculating about whether the popular memcoin has a chance to become the official means of payment of the site and win recognition from the wider public.
Dogecoin has received significant media attention
Although Grayscale's victory in the case against the Securities and Exchange Commission (SEC) was the main topic of this week, Dogecoin also managed to attract attention.
The Santiment chart below shows that between August 27 and 29, DOGE's social dominance increased from 1.05% to 1.9%.
The Social Dominance metric measures the percentage of mentions of a certain cryptocurrency in relation to the 50 most discussed projects. The surge recorded at the beginning of the week indicates that the receipt of a license for crypto payments by Elon Musk's company has significantly fueled interest in the asset.
However, another important on-chain indicator, meanwhile, is giving red signals.
DOGE traders take profits
Market participants expectedly decided to take advantage of market euphoria and take profits. According to the exchange's market depth data, traders opened orders to sell 563 million and buy 335 million DOGE.
The Exchange On-chain Market Depth chart shows the volume of orders placed on centralized exchanges. At the moment, the supply of Dogecoin exceeds the demand by 228 million coins. This suggests that the price of memcoin is under serious pressure.
Dogecoin Price Prediction: Correction to $0.060
If traders remain bearish, the DOGE price could fall below $0.060 in the coming days.
This forecast is confirmed by the In/Out of Money Around Price data, which reflects the distribution of entry prices in the positions of current Dogecoin holders. The 77,000 addresses that purchased 4 billion coins at an average price of $0.063 will provide significant support to the asset. If they fail, DOGE is waiting for a move towards $0.058.
More positive news on Twitter or Musk's hints at integrating memcoin as an official means of payment will help the bulls push Dogecoin to $0.080. However, 164,000 wallets that bought 20 billion coins at an average price of $0.073 could slow down the rally or nullify it.
