DOGE Rallies on Renewed Talk of Elon Musk Buying Twitter

Bob Mason
Published: Apr 25, 2022, 14:31 UTC

DOGE returns to $0.14 on news of Twitter accepting a $43bn Elon Musk cash offer. Confirmation of a sale would support a run at April's high of $0.1796.

Dogecoin is a modern way of exchange and this crypto currency

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.

DOGEUSD 250422 Daily

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.

DOGEUSD 250422 Hourly

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.

DOGEUSD 250422 4-Hourly

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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