Dogecoin Rises 5% on Grayscale's Legal Win and Elon Musk's X Involvement, Future Growth Potential
Summary:
DOGE price rises 5% in the past 24 hours, boosted by Grayscale's legal victory against the SEC and Elon Musk's involvement in X's payment services. Technical analysis suggests a potential downturn, but strong fundamentals may support long-term growth. Breaking key resistance levels could lead to a 60% price rally by year-end. This article does not provide investment advice.
The price of Dogecoin (DOGE) has increased by approximately 5% in the past 24 hours, reflecting the overall trend in the cryptocurrency market. This growth comes despite a 2.4% decrease in DOGE price on August 30th. However, Dogecoin is still up 5% compared to yesterday's lows, while the total crypto market capitalization has seen a 4.5% gain.
Dogecoin's price surge can be attributed to the recent legal victory of Grayscale Investments, a crypto investment platform, against the U.S. Securities and Exchange Commission (SEC). On August 29th, a federal court ruled in favor of Grayscale, allowing it to convert its Bitcoin trust into an exchange-traded fund (ETF). This decision has raised hopes that a Bitcoin ETF may soon become a reality in the U.S. market.
Following the court ruling, Bitcoin's price experienced an 8% jump, which had a positive impact on other cryptocurrencies, including Dogecoin. The correlation between DOGE/USD and BTC/USD currently stands at 0.96, indicating a strong correlation between the two digital assets.
Coincidentally, Dogecoin's price increase in the past 24 hours aligns with Elon Musk's involvement in payment services for X (formerly Twitter). Rhode Island regulators recently granted X a currency transmitter license, enabling the social media giant to offer financial services, including crypto-related activities. Musk, a notable supporter of Dogecoin, has previously hinted at the possibility of introducing DOGE payments on the X platform. Such rumors have previously driven up DOGE prices.
From a technical perspective, Dogecoin has been trading within a bear flag pattern since August 17th. This pattern typically indicates a bearish continuation, with a potential breakdown expected in the coming weeks. According to analysts, the target for DOGE/USD is around $0.051 by September, representing a decrease of over 20% from current levels.
However, some analysts argue that Dogecoin's strong fundamentals may support its long-term price growth. Despite the bear flag pattern, DOGE price is currently testing a multi-year descending trendline resistance as support. Breaking above key technical resistances, such as the 50-week exponential moving average (EMA) near $0.079 and the 200-week EMA near $0.086, could pave the way for a price target of $0.106. Achieving this target would signify a 60% price rally by the end of 2023, but breaking the aforementioned resistance levels will be crucial for the bullish sentiment in the weeks and months to come.
Please note that this article does not provide investment advice or recommendations. As with any investment or trading decision, there are risks involved, and readers are encouraged to conduct their own research.
Published At
8/30/2023 1:17:55 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.