The Dogefather is at it again. Tesla, Inc. TSLA CEO Elon Musk's remarks on Dogecoin DOGE/USD Sunday set in motion a rally in the meme currency, even as the rest of the crypto universe is showing a lackadaisical trend.
Musk Talks Up Doge: Musk, who has picked up a passive stake in Twitter, Inc. TWTR and joined the company's board, has actively begun discussing steps to make the social media platform viable and trustworthy.
Musk has some suggestions for "Twitter Blue," the $3 per month subscription service launched by the short messaging app. These include recommendation for a price cut, providing an authentication checkmark for all subscribers, elimination of ads and making subscription payment proportionate to affordability of different regions.
More importantly, Musk called for allowing payment for Twitter subscription in Doge.
This sent the Shiba Inu-themed coin spiking by over 8%. The gain is all the more noteworthy because most other cryptos are seen either pulling back or flat-lining. Bitcoin BTC/USD and Etherium ETH/USD, the top two cryptos in terms of market value, were up only modestly.
Source: CoinMarketCap
Last week, at Tesla's Cyber Rodeo fest to commemorate the opening of Giga Texas, Dogecoin's mascot was projected using drones. This sparked a rally in the meme coin, which however was short-lived.
Related Link: Dogecoin Vs. Shiba Inu: How The Meme Coin Rivalry Pans Out In Recent Crypto Market Recovery
Where's Doge Headed Near Term: Dogecoin has been on a broader downtrend since it peaked at $0.737567 on May 8, just ahead of Musk's "Saturday Night Live" show appearance.
The crypto peaked ahead of the broader crypto market, which topped out only in early November. The occasional recovery attempts by Doge did not lead to a trend reversal, with the weakness intensifying in 2022 amid the geopolitical tensions. The meme coin hit a year-to-date low of $0.110686 on March 13.
The Musk catalyst has helped Doge bounce up from its 100-day moving average of $0.141784. And it is now approaching a near-term resistance around $0.165578. The next resistance lies around $0.172907. Further up, the 200-day moving average $0.181510 could serve as resistance.
On the downside, the crypto may be supported by the 100-day MA and further down by its 50-day MA of $0.130596.
Source: Yahoo Finance
The recent rally triggered by Musk's comments should be considered with a pinch of salt. The upside hasn't been accompanied by heavy volume and the relative strength index, a momentum indicator, is currently approaching overbought levels.
That said, with Musk's Twitter chatter regarding the revamp of the social media platform intensifying, there is a likelihood Doge becomes an integral part of the conversation.
At last check, Doge was seen adding 7.547% to $0.154300.
Related Link: Is Dogecoin a Good Investment
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