Dogecoin is currently trading at $0.0670, up 13%. Bulls are positioning ahead as Tesla CEO Elon Musk tells financial backers that he may close the deal with Twitter by Friday, October 28. This comes barely 21 days after Musk publicly renewed his buyout offer. According to Bloomberg, Musk stated during a video conference call that his acquisition deal with Twitter would be concluded by this Friday. Musk’s conference call was with the banking institutions providing funding for the acquisition. Musk is reportedly opening a $13 billion line of credit with them. The Tesla and SpaceX CEO renewed his Twitter buyout offer on October 4 for his original agreed-upon price of $44 billion. Dogecoin prices rose after this initial news as Musk earlier floated the idea of using the meme cryptocurrency for social media payments if the deal was successful.
Key Levels
Resistance Levels: $0.0916, $0.0800, $0.0690
Support Levels: $0.0600, $0.0550, $0.0500
DOGE/USD Daily ChartDOGE/USD began the week’s trade by bouncing around the $0.0586 mark while consolidating gains beyond the $0.0600 mark on the daily time frame, limiting expected bearish potential. As previously said, a positive correction is possible after the breach of resistance levels at the daily moving average (MA 50).
However, on the prior day, buyers appeared to regain the upper hand after the DOGE/USD rebound crossed the $0.0613 level and continued to sustain a positive bias on the pair. The pair has spiked to its highest levels in two months as buying sentiment kept DOGE positive. Dogecoin might continue marching higher with the dollar dragged down by decreasing US bond yields.
DOGE/USD 4-Hour ChartAs seen on the 4-hour chart, the intraday bias in DOGE/USD remains bullish, with a target of $0.0700. The continuous split there could confirm the ongoing rally from $0.0600 and its anticipated goal back toward the August 2022 high at $0.0917. The next target for a rally is above the intraday high of $0.0690. As long as the price stays above the $0.0650 support level, this could be the preferred situation.
On the downside, this bullish outlook may reduce the importance of the breach of the $0.0600 minor support level and instead focus on a new layer of support at the $0.0650 level. A decisive move lower might give the bears absolute leverage and halt the short-term bullish outlook, with the $0.0600 level likely to come back into focus.
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