After the news broke out that Elon Musk had completed the takeover of Twitter for $44 billion, the leading meme cryptocurrency reacted to the news by soaring in price once again.
Dogecoin has historically followed a known pattern whenever the news involves the Tesla boss, who has been its most ardent supporter to date. The rise in the value of the canine token is intrinsically tied to the actions of the billionaire, positive or otherwise.
The news revealed that Dogecoin had attained a 4-month high in whale transactions which points to another significant price uptrend in the future, as revealed by the crypto analyst Ali Martinez.
Price Uptrend a Possibility
To further drive his point on the imminent price movement in the future, Martinez uses a chart to analyze the price action of the meme coin, which shows an increase in the number of large transactions which occurred on April 25 alongside a price increase.
The number of transactions on the Dogecoin network has a value greater than $100,000, which has reached a 4-month high after recording 2,440 transactions, as outlined by Martinez.
Additionally, the crypto analyst noted that such market activity could signify that the whales are actually in motion and maybe in a position to pounce once a big price trend surfaces.
Dogecoin Price Review
In terms of price movement, Martinez also posted a chart displaying the direction the DOGE is likely to take; from all indications it is heading to $0.24 after the breakout from the falling wedge pattern on the seven-day trading chart.
However, Martinez noted caution and explained that should DOGE fail to maintain the price above the $0.13 support level, the bullish outlook for DOGE will be invalidated.
Meanwhile, Finbold has previously reported that DOGE has added $2 billion in market capitalization just an hour after the announcement began making waves that Elon Musk is in another negotiation with Twitter about taking over the platform.
Following the news that both parties had sealed the confirmation of the deal, the price of the meme token skyrocketed, jumping from $0.1248 to a new high of $0.1374 in just an hour. At the same time, the market cap has also risen from $16.56 billion to $18.64 billion in the same time frame.
At the time of writing, Dogecoin is trading at $0.1652, an increase of 32.68% over the past 24 hours and a further 18.16% over the week, as highlighted by CoinMarketCap market metrics.
The price surge has been sudden because Dogecoin has often been the direct beneficiary of any positive development involving the billionaire at any point in time. This time, it is expected that the benefits would be massive for the progress of the crypto industry and Dogecoin in particular.
Admittedly, the takeover is seen as a win for the crypto industry, and Dogecoin will be its biggest beneficiary should the token succeed in recovering its previous market value.