Elon Musk’s Recent Twitter Purchase led to Massive Dogecoin Volatility, How Long Will It Sustain?
Since the market collapsed in May 2022, the cryptospace has been heavily influenced by bears. The Bitcoin price was slashed by more than half, dragging the other popular altcoins lower in the meantime. Dogecoin, on the other hand, was speculated to be dead as it maintained a stagnant trend for more than a year. However, Elon Musk has again jumped in to rescue his favourite token and ignite the DOGE price rally.
But the question is whether DOGE prices will remain above the gained levels or simply display a short-term bounce, as they do every time.
It would not be incorrect to say that Elon Musk’s acquisition of Twitter has halted the crypto space’s bearish trend. The rebound, however, has yet to be validated because the tokens have yet to overcome their respective resistance levels. Meanwhile, the DOGE price appears to be very close to undergoing a significant breakout beyond the consolidation that may kick-start a decent upswing very soon.
With the rounds of acquisitions, bulls quickly jumped in action and uplifted the price beyond the crucial resistance levels. However, they failed to keep up the price as the bear dominated the rally and slashed the price back within the triangle. As the token manages to trade within the bullish pennant, the probability of resuming an uptrend emerges.
The rally appears to be pretty short-lived as the active address count has considerably dropped after the recent spike, along with the trading volume. Conversely, social dominance continues to flutter high, which may certainly not impact the DOGE price on a larger scale.
No doubt the volatility of Dogecoin has been spiking with the rounds of Elon Musk’s Twitter acquisition, but it is more important to figure out when the hype will die.Source