Dogecoin Price Eyes $0.15 Rally Despite Elon Musk Excluding DOGE from Twitter Payments

Ibrahim Ajibade
Updated: Jun 23, 2024, 09:04 GMT+00:00

Key Points:

  • Dogecoin price continues to consolidate above the $0.12 support level, despite intense volatility surrounding the crypto markets in the last 5-days.
  • Recents filings shows that Elon Musk-led X (formerly Twitter) has excluded DOGE from its initial X Payments Filing.
  • After prices fell below $0.14 on June 16, DOGE miners stopped selling, accumulating over 110 million DOGE in the last 7-days.
Dogecoin (DOGE) Price Forecast

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Dogecoin price continues to consolidate above the $0.12 support level despite intense volatility surrounding the crypto markets, a shift in DOGE miners’ sentiment may trigger a considerable gains in the week ahead. 

Elon Musk Excludes DOGE from X Payments Filings

Since 2020 when Tesla began accepting Dogecoin payments for Cars and merchandise, crypto enthusiasts have wondered if Elon Musk, a long-term advocate of the DOGE meme coinDOGE meme coin would incorporate digital tokens into his envisioned “everything app”

When Elon acquire Twitter (X) in 2023, those speculations grew louder. Yet, according to Bloomberg, new regulatory documents suggest obtained last week show that while Musk is indeed working on the X Payments service, it does not seem to include cryptocurrencies at the intiial stage.

These documents detail the creation of a subsidiary called X Payments, which has already received money transmitter licenses in 28 states, as FXEmpire reported in March 2024, and is in the process of obtaining licenses in the remaining states.

Currently the specific objectives of X Payments are not fully clear from the available documents or the recent statements made by Musk and CEO Linda Yaccarino.

However, there is still a possibility that cryptocurrencies might be added to the payment system in the future, as Dogecoin supporters remain optimistic.

Dogecoin price action after Elon Musk Excluded DOGE from X Payments Filings.  | June 2024 | TradingView
Dogecoin price action after Elon Musk Excluded DOGE from X Payments Filings. 
| June 2024 | TradingView

Amid intense crypto market volatility in the past week, memecoin sector experienced disproportionate downsizing as investors lean towards more resilient sectors less sensitive to market FUD (Fear Uncertainty and Doubt).

Consequently, over the past week bear traders tightened their grip on Dogecoin and Shiba Inu (SHIB) the two largest memecoin project globally.

Between June 6 and June 18 DOGE price staggered 31.26% as seen the chart above.

But curiously while the broader crypto market correction phase intensified, Dogecoin has found steady support around the $0.12 level, and has consolidate above that range since June 18, up until the time of publication on Sunday June 23.

Dogecoin Price Finds Support as Miners Accumulate $13 Million

Recent on-chain movements shows that DOGE miners may be behind the resilient Dogecoin price performance observed in the the last 5-days dating back to June 18.

This negative development surrounding DOGE’s exclusion from X Payments initial filing has contributed to Dogecoin’s negative price performance last week.

IntoTheBlock’s miner reserves chart below tracks real-time swings in cumulative DOGE balances controlled by recognized mining firms and mining pools.

Dogecoin price vs. DOGE Miners' balances | June 16 - June 23, 2024 | IntoTheBlock
Dogecoin price vs. DOGE Miners’ balances | June 16 – June 23, 2024 | IntoTheBlock

The snapshot above shows that miners held a cumulative balance of 4.08 billion DOGE as of June 16. But it appears that as price fell below the $0.14 range last week, the Dogecoin miners halted their month-long selling trend, and began accumulating their block rewards instead.

At the time of writing on June 23, a total for 4.19 billion DOGE now sits in the miners reserve balances, reflecting an 110 million DOGE within past 7-days alone.

Valued at the DOGE 7-day Simple Moving Average (SMA) price of $0.125, the miners’ newly-acquired 110 million DOGE are worth approximately $13.7 million.

On a Proof-of-Stake network like Dogecoin, miners are issued block rewards in the native token, as they dedicate computing resource to validate transactions on the blockchain network.

And when miners cut-back on selling those block rewards, it reduces the rate at which newly-mined coins trickle into the market supply, cooling the inflationary pressure.

Dogecoin Price Forecast: Bulls Eyeing $0.15 Retest

Evidently Dogecoin miners’ $13.7 million accumulation trend over the past week, has played a key role in DOGE price defending the $0.12 support despite raging bearish headwinds from the broader crypto market downtrend and Elon Musk excluding DOGE from X Payment initial fillings.

Dogecoin price could be on the verge of a major upswing towards the $0.15 level, if this trend persists in the week ahead.

Dogecoin price forecast | GIOM data| IntoTheBlock
Dogecoin price forecast | GIOM data| IntoTheBlock

However in terms of short-term support, IntoTheBlock’ GIOM data shows that DOGE price is unlikely to fall-below the $0.120 level in the coming week. As seen above, over 190,500 active holder addresses had acquire 42.1 billion DOGE at the maximum price of $0.120.

Considering that this is the largest cluster of Dogecoin holders globally, DOGE price will likely avoid further downside if the opt to defend their positions.

About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

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