The Musk - Twitter deal brought memecoin back to life

 Dogecoin cryptocurrency doubled in price, while many other memecoins like Shiba Inu, Dogelon Mars increased tens of percent after Musk became Twitter boss.


 October 29, the Doge sometimes reached more than 0.15 USD before falling to 0.12-0.13 USD on October 30. This is the highest price of this cryptocurrency after nearly half a year, maintaining between 0.5 and 0.7 USD. On October 25, the price of Doge was $0.6, and has increased more than 150% just four days later. As a result, this memecoin surpassed Solana and Cardano, becoming the world's eighth largest cryptocurrency by market capitalization, at $16 billion.

The increase in the price of Doge also entailed a series of other memecoin-type cryptocurrencies. From October 27 to October 30, Shiba Inu increased by more than 40%, from 0.000009 to 0.000014 USD. Dogelon Mars - the memecoin named after billionaire Elon Musk - is up more than 140% while Baby Doge Coin is up 20%.

According to analysts, the above development reflects the excitement of crypto investors after Elon Musk officially bought Twitter on October 27. The US billionaire strongly supports Doge and once offered the option to use this coin to buy Tesla cars, pay for SpaceX products or buy perfume. Many people expect the new boss of Twitter to allow the application of Doge on the social networking ecosystem, for example to buy a premium Twitter Blue account.

Binance, the investor who contributed 500 million to Musk to buy Twitter, also confirmed that it is building blockchain and cryptocurrency strategies that can be implemented on Twitter.

Doge's last major price rally was in April, when the world's richest man made his first offer to buy Twitter. After that, this copper dropped sharply because the deal was delayed many times, even at risk of collapse.

However, experts assess this rally has many signs of unsustainable. As reported by Santiment, a large number of transactions are worth over $100,000, indicating that they are heavily carried out by crypto whales.

Dogecoin's Relative Strength (RSI), a price index that identifies overbought and oversold levels, rose to 93.69. This is the highest index since April 2021 - a month before Doge rallied to a record $0.75. According to Cointelegraph, it shows investors' excitement about cryptocurrencies, but also a sign that Doge will decline or move sideways in the near term.

Technical analysis conducted by Cointelegraph shows that Doge's price pattern is similar to that of 2018-2020 and it is likely that the coin will drop to 0.055 by the end of the year, losing half of its current level.

After becoming Twitter's boss, Elon Musk has fired a series of senior personnel and plans to turn Twitter into a super app, where users can not only send messages but also pay and shop online. or call a car.

Adding more tools and services to Twitter could help Musk realize his company's growth goals, especially as he wants to grow his user base from 237 million to more than a billion. Published documents show that Musk and close associates discussed the idea of ​​adding a digital payment tool to Twitter.
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