By Shelly Melancon (Switzerland)
The news of Elon Musk’s complete takeover of Twitter resulted in the massive price action of the wealthiest man’s favorite digital asset, DOGE.
DOGE Reaction To The Twitter Takeover
It is no surprise there is a massive DOGE price reaction to the announcement, as that has always been the case whenever Musk does or says anything, especially when it is about the crypto market. However, the Twitter takeover news resulted in a 4-month high in DOGE whales’ transactions.
According to a tweet analysis by top crypto analyst Ali Martinez, “the DOGE whales’ actions indicate that they are taking entry positions now in anticipation of a significant increase in DOGE price.” Martinez proved his point by sharing an IntoTheBlock chart that showed the rising volume of DOGE whales transactions and the consequent increase in DOGE price.
The data indicated that those whose DOGE holdings are worth $100K each made 2,444 DOGE transactions in the last day. Martinez opined that “these kinds of actions can only be from whales and indicates that they are preparing for a huge leg up in DOGE price.”
DOGE Price Action
Martinez also tweeted a separate chart that indicates that DOGE price is on its way to the $0.24 price level. According to the crypto analyst, the 1-week chart shows that DOGE has just broken out of a descending wedge shape, a sign of the start of a bullish run.
But he further remarked DOGE might still retrace to its next crucial support if it fails to flip its current price to strong support. As previously reported, DOGE’s market cap increased by $2B (from $16.57b to $18.65) in the 60 minutes leading to the final takeover of Twitter by Elon Musk. This huge transaction volume increased DOGE price from $0.1247 to $0.1375 within that 60 minutes.
The latest CoinMarketCap data shows that the DOGE price gained nearly 33% in the last day and 18.17% in the last several days. DOGE currently trades at $0.1653. Time will tell whether the Musk-Twitter takeover will continue to make DOGE price bullish. Many analysts still speculate that the DOGE price might hit $0.49 before this year ends.
Spike In DOGE Liquidations
According to recent Coinglass data, DOGE liquidations since the announcement of Musk’s Twitter takeover have resulted in 134m DOGE liquidations estimated at $20.15m. Thus, DOGE is the third most liquidated digital currency behind BTC and ETH. The Coinglass data remarked that many of those making DOGE entry positions are doing so in expectation of a drop in DOGE price.
Their remarks contrast with Ali Martinez’s prediction that many DOGE traders are taking entry positions to anticipate a DOGE price increase. Nevertheless, DOGE made the most gains (20%) digital currencies with the highest gains in the last 24-hours. Its gains were followed distantly by Ethereum and Bitcoin, which increased in value by 2.96% and 3.9%, respectively, during this period.
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