Here’s why Dogecoin price jumped and what to expect

The Dogecoin (DOGE/USD) price jumped sharply on Sunday after Elon Musk unveiled his new plans for Twitter. The coin rose to a high of $0.1550, which is about 10% above the lowest level last week. It has risen to the highest point since April 6th this year.

Elon Musk Twitter shake up

One of the biggest stories recently has been on Elon Musk’s acquisition of Twitter shares and his entry to the board of directors. He is now the company’s biggest shareholder. In his first act as a board member, the Tesla boss has pressured the company to reconsider adding an edit button.

On Sunday, he came up with more proposals. First, he recommended that the company should lower its price for Twitter Blue to $2.99-a-month and ban ads. Further, he suggested that this payment should be paid 12 months upfront and given a 60-day waiting period before one gets the authentication checkmark.

The Dogecoin price rose because Musk proposed that the company should also accept the coin for payments. Such a move would make Twitter one of the biggest firms that accept the cryptocurrency. Tesla already accepts the coin for its accessories business.

Still, it is unclear whether Twitter will accept Dogecoin thanks to its volatility. For example, the coin’s price has fallen by more than 14% from its highest point this month. Therefore, companies that accept it should be ready to take such hits.

The most likely scenario for companies like Twitter to accept cryptocurrencies is through stablecoins, which are backed by fiat currencies like the US dollar. Stablecoins are now mostly used to trade cryptocurrencies.

Also, it is unlikely that Dogecoin demand will rise sharply even if Twitter accepts the coin. Besides, the service has received a lukewarm reception from users. Its revenue has been insignificant since its launch in 2021.

Dogecoin price prediction

The four-hour chart shows that the DOGE price has been in a steady bullish trend in the past few weeks. As a result, it has managed to move above the ascending trendline shown in red. It has also risen above the 25-day and 15-day moving averages. The coin’s price has also moved above the important resistance level at $0.15, which was the highest level on March 28th.

Therefore, the Dogecoin price will likely keep rising as bulls target the next key resistance level at $0.17.

The post Here’s why Dogecoin price jumped and what to expect appeared first on Invezz.