Dogecoin (DOGE) is in the news again after Elon Musk on Wednesday reaffirmed his bid to buy Twitter, and DOGE supporters now hope that their favorite meme coin will get the exposure they believe it deserves as a result of the deal.
As always, when it comes to dogecoin, the infamous $1 price target becomes a topic, despite the fact that dogecoin has never reached that level. At its peak in May of 2021, DOGE reached as high as $0.74 before it entered a bear market that has now brought it all the way down to $0.06 – a decline of more than 90%.
From a shorter-term technical analysis, DOGE now looks poised for further upside after strong bullish action brought the price through the $0.063 resistance area on Tuesday this week. Worth noting is also that the price appears to have found support to the downside around $0.050 and $0.057, with these two levels now key if DOGE is to avoid further losses.
Also pointing in a bullish direction right now is the fact that DOGE has broken above both the 20 and 50-day moving average lines. These moving averages are both considered important levels to watch for medium-term traders.
Dogecoin came into focus again on Tuesday this week when Tesla chief Elon Musk revealed in an SEC filing that he still wants to buy Twitter at the originally agreed upon price. The confirmation from Musk was surprising given that he has previously indicated a lack of interest in pursuing the deal, while accusing Twitter of giving out misleading information about bot accounts on the platform, among other things.
Dogecoin has on several occasions in the past been promoted by Elon Musk on Twitter, and the price has tended to spike each time Musk has mentioned it.
When Musk’s original bid to buy Twitter was first revealed back in April this year, DOGE immediately spiked up by around 6% before later giving back some of its gains. Similarly, the DOGE price fell by around 5% within the first 15 minutes after Musk in May put the Twitter deal on hold.