Written by 1:40 am Cryptocurrency

Dogecoin rally sustained by Elon Musk’s Twitter purchase 

  • DOGE Price at the time of writing – $0.1173
  • Dogecoin rose by over 104% last week
  • Crypto market cap ascended to $1.07 Trillion

The buying frenzy that occurred last week as a result of Elon Musk’s acquisition of Twitter was fueled by Dogecoin’s continued rally on Monday. After Musk took control of Twitter (TWTR), Dogecoin (DOGE-USD) performed better than all other major cryptocurrencies.

A breakout of memecoins was sparked by Friday’s completion of Musk’s Twitter acquisition, with dogecoin leading the pack. Dogecoin’s price increased by more than 104 percent last week, but it dropped early on Monday.

However, the price rebounded to over $0.12 thanks to strong investor support, so this was only a brief decline. According to data from coinglass.com, over $4 billion worth of dogecoin short positions have now been settled on multiple cryptocurrency exchanges.

Dogecoin has been in a ‘bear channel’ since May 2021.

Peter Brandt, a seasoned trader, issued a caution to investors on Monday regarding the most recent rally of the alpha memecoin. He tweeted that don’t mistake this price explosion for the beginning of a bull market. 

The assumption that the end of a bear market is automatically a sign that a bull market has begun is a common mistake made by novice traders and wannabe traders. The veteran trader had previously stated in a tweet that the dogecoin price action of the previous week was pushing the memecoin out of its prolonged bear channel.

Peter Brandt, a seasoned trader, claims that dogecoin has been in a bear channel since May 2021. He tweeted on Sunday: The bear market that began at the high of $DOGE in May 2021 has come to an end thanks to the upside violation of what is known as a bear channel.

“The Elon effect,” caused by Tesla CEO Elon Musk’s purchase of Twitter, has been blamed for the recent dogecoin boom.

With widely diverse viewpoints, Musk wrote in a tweet on Friday, Twitter will form a content moderation council. The possibility that Musk would reactivate the Twitter account of former US President Donald Trump erupted last week. However, Musk added that the council will not meet until major content decisions or account reinstatements are made.

ALSO READ: Blockchain.com join hands with Visa to offer crypto debit card

BTC Price at the time of writing – $20,370.99

In a tweet on Saturday, the billionaire said that in the future, Twitter users could choose a version of the social media platform they like by rating their tweets. Added he: Being able to choose which Twitter version you want is probably better, similar to how a movie’s maturity rating works.

However, after tweeting a link to an article with an unsubstantiated theory regarding the life-threatening hammer attack on Paul Pelosi, the husband of US House of Representatives speaker Nancy Pelosi, the Tesla boss came under fire.

The tweet, which he later deleted, provided a link to an article that made unsubstantiated claims about Paul Pelosi’s personal life and the possible role it played in the attack that occurred last week at his and his wife’s San Francisco residence.

The Santa Monica Observer, a publication that had previously made the absurd claim that Hillary Clinton had been replaced by a body double on September 11, published the article that was linked to in the tweet.

On Monday, other cryptocurrencies surged, bringing the total cryptocurrency market cap to $1.07 trillion, a 0.7% increase over the previous 24 hours.

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