DOGE Rallies on Renewed Talk of Elon Musk Buying Twitter
Key Insights:
- Today, news hit the crypto wires of Twitter willing to accept Elon Musk’s bid.
- DOGE had joined the broader crypto market in the deep red before the latest news update.
- Technical indicators have turned bullish, with DOGE breaking down key resistance levels in response to the news.
At the time of writing, DOGE was up 6.67% to $0.1407. A bearish start to the day saw DOGE slide to a morning low of $0.1226 before Twitter news hit the crypto wires.
In response to the news, DOGE surged to a day high of $0.1417. The breakout saw DOGE move through the day’s Major Resistance Levels to return to $0.14 levels for the first time since last Monday.
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% Twitter stake, 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 today’s breakout.
News Hits the Wires of Twitter Set to Agree a $43bn Cash Offer
This morning, Reuters reported news of Twitter prepared to agree to a $43bn Elon Musk cash offer.
According to Reuters, the $43bn in cash is Elon Musk’s “best and final” offer.
Reuters went on to report,
“Twitter may announce the $54.20-per share deal later on Monday once its board has met to recommend the transaction to Twitter shareholders.”
DOGE Technical Indicators
DOGE will need to avoid a fall through the Third Major Resistance Level at $0.1399 to support more gains.
A return to $0.1450 would support a run at $0.15 levels.
In the event of an extended rally through the day, DOGE could visit $0.17 levels before any pullback.
A fall through the Major Resistance levels and the $0.1325 pivot would test the First Major Support Level at $0.1304. In the event of an extended sell-off, the Second Major Support Level at $0.1288 will likely come into play.
DOGE should avoid a return to sub-$0.1350. The Third Major Support Level at $0.1351 should limit the downside.
Much will depend on further news updates, with any talk of a collapsed Twitter buyout likely to see DOGE cough up today’s gains.
Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bullish signal. DOGE sits above the 200-day EMA at $0.1387. This morning, DOGE broke through the 50-day, the 100-day, and the 200-day EMAs. The 50-day narrowed on the 200-day EMA, with the 100-day EMA pulling away from the 200-day EMA.
DOGE would need to hold above the 200-day EMA to target $0.15.
