Dogecoin price, with attributes to Elon Musk rebranding Twitter to X, defied the dull crypto market to print a bullish wave above $0.08 last week. The leading meme coin initially consolidated within a narrow range with support at $0.06 and resistance at $0.072, limited by reduced liquidity.
Elon Musk, the owner of Twitter and the CEO of Tesla, announced in July the decision to rebrand the microblogging platform to X—a move that is set to pave the way for the “everything app”.
Musk’s soft spot for Dogecoin has seen investors and industry experts foresee the possibility of the meme coin being adopted as a payment method on the X. The platform’s umbrella could also spread to cover Bitcoin (BTC), which Tesla had adopted for payments in 2021, although briefly.
“It would be an absolute game-changer to incorporate cryptocurrency payments as part of that ecosystem,” an expert quoted by CoinDesk said.
Brian D. Evans, CEO and founder of BDE Ventures, a Web3 venture studio and advisory company said that he “wouldn’t be surprised if he (Musk) actually went through with enabling payments via DOGE.”
Dogecoin price tends to respond and rally to Musk’s tweets and actions on Twitter. The tremendously rallied in October when the billionaire completed the $44 billion deal, acquiring Twitter.
Therefore, speculations of DOGE being used to power digital currency payments on X are significantly high and would be a major boost for the token that has tumbled 89.87% from the all-time high during the bear market.
X could be the platform that takes crypto adoption to the next level and DOGE could be at the epicenter. However, before that, investors may want to assess a potential bullish breakout likely to follow the rejection from July highs of $0.0826.
As investors bought the X rebrand news, Dogecoin price climbed to $0.0826. This led to a DOGE rolling back to test the descending trendline support, which many traders consider the uptrend confirmation.
Traders should consider ticking a few boxes before activating their buy orders, starting with a rebound from the descending trend line, a break above the 200-day Exponential Moving Average (EMA) (purple) resistance at $0.0752, and a Money Flow Index (MFI) that’s pointing toward the overbought region 80.00 to 100.00.
Since the Moving Average Convergence Divergence (MACD) exhibits a bearish outlook with the recently confirmed sell signal, losses might stretch to $0.0716 – confluence support created by the 50-day EMA (red) and the 100-day EMA (blue).
While continued losses below this buyer congestion area are unlikely, if the entire crypto market structure worsens in August, Dogecoin price could sweep through lower liquidity at $0.062 before a substantial trend reversal.
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