Elon Musk Could Drive Dogecoin (DOGE) Price to $0.2 With this Move

Key Insights:

• Dogecoin (DOGE) price is hovering above the $0.81 on Jan 23,  down 10% in the last two days, but a recent update from Twitter (X) could trigger a bullish reversal. 
• X(Formerly twitter) has launched a dedicated page for its proposed XPayments service scheduled to launch later this year. 
• DOGE’s prospects of becoming one of accepted currencies on the X(Twitter) payment platform could trigger an upward price reaction in the near future. 
• As the news broke on Jan 22 Dogecoin recorded a significant boost in buy orders from, as speculative traders look to buy the dip. 

Dogecoin (DOGE) price is hovering above the $0.81 on Jan 23,  down 10% in the last two days, but a recent update from Twitter (X) could trigger a bullish reversal. On-chain analysis explores the DOGE ecosystem’s response to the speculations about X(Twitter)’s payments platform launch could impact DOGE price action. 

Will the speculative traders buying the rumor trigger a DOGE price rebound sooner than expected? 

DOGE community agog as X(Twitter) Teases New Payments Platform 

On Jan 9, Elon Musk’s social media giant X (formerly Twitter) published a blog post titled “Transforming the Global Town Square” outlining its official roadmap for 2024. 

In addition to exploring Artificial Intelligence (AI) integration for advertising, X also notably mentioned plans to launch its own native peer-to-peer payments product. On Jan 22, the team behind Elon Musk’s X took a major step toward the official launch of X payments by launching a dedicated page for the service.

“We will launch peer-to-peer payments, unlocking more user utility and new opportunities for commerce, and showcasing the power of living more of your life in one place.” – X(Twitter), Jan 2024.

Elon Musk’s and X’s affinity with Dogecoin has been well documented over the years, with the DOGE logo momentarily added to the website in 2023. In effect, X’s newly-unveiled plans to launch a p2p network has triggered speculations that the social media giant could adopt DOGE as an official currency option on the proposed payments service

Dogecoin community took to social media speculative optimism that the service could deepend DOGE’s global reach and adoption. 

Unsurprisingly, DOGE appears to have received significant market demand in the last 24 hours as speculative move to buy-the-rumor early. 

800M DOGE Sell Orders Could Truncate the Price Rally 

Amid bearish headwinds in the crypto market, Dogecoin price held firm at the $0.08 territory on Jan 23, down 12% in the last 3 days. However, a vital on-chain data point shows that DOGE witnessed a substantial boost in market demand after the X(Twitter) payment’s platform page became public. 

IntoTheBlock Aggregate exchange order books data presents the value of a specific cryptocurrency’s active buy/sell orders for listed across various exchanges. 

At press time on Jan 23, barely 24 hours after the news broke, DOGE buy orders have now exceeded sell orders, above that could push Dogecoin price upward in the near future. 

As depicted in the chart below,  DOGE traders have listed orders to purchase 885.3 million DOGE. On a promising note, this far outweighs the number of active buy orders which currently stands at 608 million DOGE. 

When the ‘Buy/Bid’ side on the left of the order books towers higher than the Sell/Ask side, as depicted above, it signals a growing positive momentum among traders and new entrants. 

Digging into the specifics, Dogecoin buy orders currently out number active sell orders by a whopping 276.7 million DOGE. Intuitively, when the market supply for an asset outpaces demand by such a large margin, it puts upward pressure on price. 

The timing of this spike in Dogecoin market demand could be attributed to speculative traders buying-the-rumor that DOGE could become an officially adopted cryptocurrency on Elon Musk’s X(Twitter) payment service. 

As X(Twitter’s) official plans for its payments service unfold, DOGE stands a chance of scoring historic gains from the market demand and media buzz that could be potentially generated from getting listed as an official currency. 

Forecast: Dogecoin Price Could Hit $0.2 If X(Twitter) Adopts DOGE

Like the rest of the cryptocurrency market DOGE price has endured significant bearish price action in the last 72 hours. However,  drawing inferences from the exchange order books trend analyzed above, the bulls buying-the-rumor could inadvertently trigger a bullish reversal in the future. 

But of the bulls to validate this outlook, they must scale the initial resistance sell-wall around $0.10

IntoTheBlock’s Global In/Out of the Money (GIOM) data groups the current DOGE funded wallets according to their historical entry prices.

It currently depicts that 798,590 addresses had acquired 14.2 billion DOGE at the average price of $0.095. Notably, this is the largest cluster of current Dogecoin holders above the current prices. 

Moving above that $0.95 support level could set-off short-squeeze triggers and possibly catalyze an accelerated price rally toward $0.20. 

Alternatively, the bearish traders could invalidate this pessimistic forecast if DOGE price fails to hold firm above the $0.07 area in the coming days. But in this scenario, the 572,720 holders who acquired 55.08 billion DOGE at the average price of $0.075 could mount significant support.