DOGE Leapfrogs Avalanche into Top 10 on News of Musk Buying Twitter
- DOGE rallied by 19.9% on Monday, overtaking Avalanche to end the day as a top 10 crypto by market cap.
- News of Twitter accepting Elon Musk’s $44bn offer drove demand for DOGE.
- Technical indicators have turned bullish, with DOGE sitting above the 100-day EMA.
In a mixed session for the broader crypto market, it was M&A activity that put Dogecoin (DOGE) in the spotlight.
News of Twitter accepting Elon Musk’s “best and final” $44bn offer drove DOGE demand.
On Monday, DOGE rallied by 19.9%. Reversing a 1.49% loss from Sunday, DOGE ended the day at $0.1581. The gain on the day was modest relative to the initial market reaction to the news.
Rebounding from a day low of $0.1226, DOGE surged by 40% to hit a day high of $0.1711 before easing back to $0.15 levels.
Monday’s breakout saw DOGE return to the top 10 cryptos by market cap. At the time of writing, DOGE’s market cap stood at $20,868m.
In early April, DOGE surged to a current-month high of $0.1796. The move through to $0.17 came in response to news of Elon Musk disclosing a 9.2% stake, the talk of a seat on the board, and a $43bn takeover offer.
News of Musk not taking a seat on the board and Twitter declining Musk’s offer led DOGE back to sub-$0.13 levels before Monday’s Twitter-fueled breakout.
The Twitter Board Agrees to Elon Musk’s $44bn Buyout
On Monday, news hit the wires of Twitter accepting an Elon Musk offer of $44bn to take Twitter private.
According to the report, Twitter shareholders will receive $54.20 per share, a 38% premium on Twitter’s April-01 trading price. Twitter Inc. closed Monday up 5.66% to end the day at $51.70.
The deal is also reportedly the largest to take a company private in more than 20-years, according to the New York Times.
Following a unanimous Twitter board approval, shareholders will need to vote on the Twitter sale, with the purchase also requiring the stamp of approval from regulators.
While shareholders are unlikely to walk away from a 38% premium in the current market environment, it remains to be seen whether regulators give the nod.
Elon Musk is looking to drive free speech on the platform and had previously proposed several changes before deciding not to take a seat on the board earlier in the month.
In early April, Musk proposed making DOGE a payment option on Twitter Blue, the platform’s subscription service. Other suggestions included banning ads and a price cut.
Following a Twitter survey, there was even the talk of changing Twitter’s logo to the DOGE logo.
DOGE Price Action
At the time of writing, DOGE was down by 1.14% to $0.1563.
DOGE will need to avoid the $0.1506 pivot to target the First Major Resistance Level at $0.1786.
Support from the broader crypto market would be needed for a move through Monday’s high of $0.1711.
An extended rally would test the Second Major Resistance Level at $0.1992 and resistance at $0.20. The Third Major Resistance Level sits at $0.2476.
A fall through the pivot would test the First Major Support Level at $0.1304. Barring an extended sell-off, DOGE should steer clear of sub-$0.13 levels. The Second Major Support Level sits at $0.1022.
Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bullish signal. DOGE sits above the 100-day EMA at $0.1405. This morning, the 50-day crossed through the 200-day EMA. The 100-day EMA pulled away from the 200-day EMA, DOGE positive.
A bullish cross of the 50-day EMA through the 100-day EMA would bring $0.17 levels back into view. DOGE will need to steer well clear of the 100-day, however.