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Dogecoin Soars 17% as Elon Musk Closes in on Twitter Deal

Dogecoin jumped more than 31% over the past two days, as its supporter Elon Musk closes in with a long-awaited Twitter deal.

2 min read
Elon Musk is a big fan of Dogecoin. Images: Shutterstock

Dogecoin (DOGE) continued its bullish price action for the second straight day, with the leading meme coin jumping to a new monthly high of $0.08022 today, according to data from Coingecko.

After a short fall, Dogecoin now changes hands at around $0.077614 a piece, up 16.7% over the past 24 hours. Trading volumes also spiked by 196% over the same period.

On a weekly note, DOGE has gained more than 31%, the largest weekly gainer among the top 20 cryptocurrencies by market capitalization.

Dogecoin, the tenth-largest cryptocurrency with a market capitalization of $10.5 billion, is less than a billion dollars away from surpassing Solana (SOL).

Nearly $8.69 million Dogecoin futures positions were liquidated over the past 24 hours, according to data from Coinglass. Most (78.81%) of Dogecoin liquidations came from blown-out short positions.

Red bars at the right end indicate short positions liquidated over the past two days. source: Coinglass.

Dogecoin’s competitor meme coin, Shiba Inu (SHIB), has also gained nearly 7.8% over the past 24 hours and trades at around $0.00001123.

Over the past 24 hours, leading cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) have also posted modest gains of 1.6% and 2.3%, respectively.

Elon’s Twitter Acquisition

The primary reason behind Dogecoin’s bullish price action is likely Elon Musk’s recent announcements about his Twitter acquisition.

Tesla’s Chief has been a big-time backer of Dogecoin, leading to increased enthusiasm among investors.

Besides the Musk factor, on-chain metrics also show strong positive growth for Dogecoin.

Addresses holding to Dogecoin for more than one year have reached a new all-time high of 2.81 million, according to data from IntoTheBlock

Also, short-term traders holding Dogecoin for less than one month have dropped to roughly 132,000, levels not seen since May 2020.

Addresses holding Dogecoin. Source: IntoTheBlock.

Dogecoin’s hashrate also reached an all-time high of 518.49 TH/s yesterday, according to data from BitInfoCharts.

The higher the metric, the safer the blockchain, as high hash rates demand immense computational power to hijack the network via a 51% attack.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

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