Dogecoin DOGE/USD reported a 6% surge over the past week, prompting one analyst to hint at expected DOGE payments on X, while another suggests shorting the meme coin.
What Happened: Self-proclaimed king of memes and protector of Dogecoin, Sir Doge of the Coin, tweeted a short video featuring an animation of Elon Musk, X, and Dogecoin.
The video depicts how X has enabled Dogecoin payments and shows Tesla, X, and SpaceX in one frame, accepting Dogecoin as a mode of payment. This hints at Elon Musk’s plan to launch a peer-to-peer payment platform and transform X into an “everything app” for users globally.
However, crypto analyst CrediBULL Crypto highlights his intention to short Dogecoin based on his analysis of Bitcoin/Dogecoin chart movements.
He plans to short Dogecoin between $0.18 and $0.20, noting that a full retracement against Bitcoin has happened more often on the DOGE chart.
With the significant spikes in Dogecoin prices, he believes the move is not yet fully retraced and foresees the meme coin witnessing a price drop to $0.04 to $0.05 as Bitcoin heads to $100,000 in the upcoming four to five months.
Price Action: At the time of writing, DOGE was trading at $0.1626, up 0.8% over the past 24 hours.
Why Is It Matters: IntoTheBlock data highlights a surge of 9.3% in large transaction volume to $1.3 billion, while daily active addresses widened by 5.8% to 57,030. Transactions greater than $100,000 increased to 495 as of April 22 from 453 as of April 21. Meanwhile, total exchange inflows spiked to $41.35 million as of April 22 from 29.12 million as of April 21.
Cryptocurrency markets are highly volatile, and the movement of Bitcoin often influences the performance of other cryptocurrencies. CrediBULL Crypto’s decision to short Dogecoin is significant as it reflects his anticipation of a potential downturn in the meme-inspired cryptocurrency’s value.
What's Next: The influence of meme coins and Bitcoin as an institutional asset class are topics expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
Read Next: Dogecoin Up 5% Since DOGE Day, ‘Big Things’ Coming For The ‘King Meme Coin,’ Founder Predicts
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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