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Highlights
- Dogecoin price breakout from a 5-month-long wedge pattern signals the end-of-correction trend.
- Elon Musk’s potential integration of Dogecoin payments on X could significantly increase demand as the increased utilities could drive an accelerated rally to $1.
- The 20-and-50-day Exponential Moving Average offers suitable pullback support to dip buyers.
Dogecoin, the popular meme cryptocurrency, posted a modest 0.85% gain during Monday’s U.S. trading session. The asset’s near-term trend has moved sideways above the $0.091 support level, hinting at a potential bottom formation. The recent 0.5% rate cut by the U.S. Federal Reserve has significantly fueled the bullish outlook for major altcoins, including DOGE.
Another reason fueling hope for a Dogecoin price reversal is the active support and endorsement from Tesla CEO Elon Musk for this cryptocurrency. Market participants are now speculating just how high this dog-themed meme could soar if Musk’s social media platform, X (formerly known as Twitter), officially adopts DOGE as a payment method.
How Far Could Dogecoin Price Rally If Elon Musk’s X Integrates DOGE Payments?
The influence of Elon Musk’s activity on Dogecoin is undeniable. Since he acquired Twitter (now rebranded to X), market speculation rumors have circulated about his plans to integrate cryptocurrency payments, with Dogecoin being the frontrunner.
If X were to implement DOGE payments, the demand for the token would likely skyrocket, as it could be used for tipping, subscriptions, advertising, and even goods or services within the ecosystem.
Around 48 hours after the announcement, the Dogecoin price could surge 20-30%, similar to the spike observed in early May 2024 when Musk added DOGE payment for some Telsa products and merchandise.
Furthermore, the increased utility will boost DOGE transactions and overall network activity, leading to more liquidity and potentially driving natural demand for this cryptocurrency.
Therefore, If X adopts Dogecoin as a native payment option, the coin price could witness an accelerated recovery to a $0.73 All-time-high or even attempt for the $1 breakout.
Check out the article on top meme coins to buy for a detailed analysis.
DOGE Price Escapes 5-Month Downtrend
In the last three weeks, the Dogecoin price prediction showcased a V-shaped reversal from $0.0889 to $0.107— a 20% increase. Amid this upswing, the buyers managed to reclaim 20-and-500-day EMA and gave a decisive breakout from the falling wedge pattern on September 13th.
This breakout signals the DOGE price escape from a 5-month correction trend. With sustained buying, the buyers could challenge the overhead resistances of $0.115, followed by the $0.144 barrier.
On the other hand, if the Dogecoin price fails to sustain above the 20-day EMA slope, the sellers may push the asset within the wedge pattern and retest the $0.91 bottom support.
Frequently Asked Questions (FAQs)
1. How high could Dogecoin go if X adopts DOGE payments?
2. What impact did Dogecoin’s recent wedge pattern breakout have on its price?
3. What is the significance of the 20-and-500-day EMAs for Dogecoin?
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