Dogecoin’s price has surged approximately 5% in the last 24 hours, reflecting broader trends in the cryptocurrency market. Influences from Grayscale Investments and Elon Musk are believed to be driving this recent rally.
Grayscale News and Market Movement
Despite a 2.4% decrease on August 30, Dogecoin remains 5% higher than the previous day’s lows, coinciding with a 4.5% gain in the total crypto market capitalization. The rally commenced after a federal court ruled in favor of Grayscale Investments, increasing optimism for the potential approval of a U.S. spot Bitcoin ETF.
DOGE/USD versus crypto market capitalization daily performance chart. Source: TradingView
Musk’s Influence and X’s License
Elon Musk’s recent acquisition of a currency transmitter license for X (formerly Twitter) has contributed to Dogecoin’s gains in the past 24 hours. Speculation about DOGE payments on the platform, fueled by Musk’s previous interest, has led to price boosts on several occasions.
99.99999% of the world doesn't know that the SEC has to decide on 7 BTC ETFs within the next 3 days:
the suits at our doorstep
— odin free 🦇🔊 (@odin_free) August 29, 2023
Technical Analysis and Price Potential
Dogecoin has been trading within a possible bear flag pattern since August 17, suggesting a bearish continuation pattern. Analysts indicate a potential target of around $0.051 by September. However, strong fundamentals could support a long-term price boost. Breaking key resistance levels at $0.106 may lead to a 60% rally by the end of 2023.
DOGE/USD and BTC/USD daily correlation coefficient. Source: TradingView
In summary, Dogecoin’s recent price surge is attributed to influences from Grayscale Investments and Elon Musk, as well as broader market trends. While a bear flag pattern raises short-term concerns, the coin’s fundamental strength could pave the way for a notable price increase in the long run.
Just In! X (the artist formerly known as Twitter) has just received a license that will let it offer crypto services to store, swap, and transfer Bitcoin and other crypto.
Elon Musk about to intro 400 million users into the market. pic.twitter.com/hKLDC7PMdf
— Lark Davis (@TheCryptoLark) August 29, 2023