Dogecoin, the prominent dog-themed meme coin, spiked nearly 12% on Saturday following the buzz around the newly established XPayments account on Twitter (aka X). It's the highest daily spike for the top meme coin since April 3, 2023.
The excitement around the @xpayments account, despite its lack of posts and no confirmation from Twitter or owner Elon Musk about the planned payment functions, are just another example of the speculative nature of cryptocurrency markets.
Elon Musk previously mentioned his intentions of turning X into a “super app” with payment capabilities, but he has not confirmed anything about the use of Dogecoin or the imminent implementation of the broader payments feature just yet. However, traders are eagerly anticipating the integration of Dogecoin into Musk's business ecosystem, including potential applications for advertisements and other services on the social media platform.
Speculation around DOGE and Twitter boosted the price of Dogecoin by 16% on Saturday, according to CoinGecko, as the coin reached a weekly peak of $0.09. The spike cooled throughout the day, leading Dogecoin to close at $0.0877 with just shy of a 12% daily jump.
Since the spike, the coin—as it usually does—cooled down and started to correct its trend throughout the weekend. On Monday, the coin dropped to lows of $0.081 but bounced back to $0.085, still 7% up since Friday and a price high enough to be on top of its weekly average price.
However, Dogecoin's spike still falls short of the $0.1 mark it achieved on its 10th anniversary last year. Created initially as a joke, Dogecoin has grown in popularity, defying its humorous origins. Musk's collaboration with Dogecoin developers to improve the coin further underscores its transition from a meme to a mainstream cryptocurrency.
Technical analysis reveals mixed sentiment surrounding Dogecoin's future. The exponential moving averages (EMAs) indicate a bearish short-term outlook, because the price in the short term is lower than that of a longer time frame. However, other indicators suggest a possible bullish bounce. The average directional index (ADX) , which measures how strong a trend is, is pointing to a weakening in the current bearish trend, which might lead to market stabilization or a potential reversal.
Elon Musk, known for his impactful tweets about meme coins, has significantly influenced Dogecoin's price fluctuations. His previous endorsements and speculative tweets have led to substantial spikes in Dogecoin's value. For instance, Musk's hint about integrating Dogecoin for payments on X and Tesla's merchandise store previously propelled a 22% price increase.
And his previous tweets—both serious and otherwise—have routinely shaken up the markets, impacting the price of meme coins and more serious cryptocurrencies like Bitcoin itself.
Edited by Andrew Hayward