Dogecoin (DOGE) experienced a remarkable 7.36% surge in value over the past 24 hours, coupled with its first Moving Average Convergence Divergence (MACD) golden cross signaling a potentially promising future for the meme-inspired cryptocurrency.
Analysts and traders have attributed this bullish momentum to the recent launch of the X Payments platform, a financial segment of X (formerly Twitter), which is closely associated with tech entrepreneur Elon Musk.
Elon Musk’s influence on DOGE and X payments
The MACD golden cross, a significant technical indicator in the world of cryptocurrencies, occurred when a short-term Moving Average (MA) crossed above a major long-term MA.
This event typically suggests that the cryptocurrency is primed for a sustained uptrend. While technical analysis does not guarantee future performance, it has undoubtedly stoked optimism among Dogecoin enthusiasts.
The catalyst for Dogecoin’s impressive price increase can be traced back to the introduction of X Payments, an integral part of the X platform rebranded by Elon Musk. Musk, who has publicly expressed his fondness for Dogecoin, hinted at the possibility of integrating DOGE as a payment option within the “Everything app.”
Back in January 2023, Fortune reported that Musk’s company was contemplating the inclusion of cryptocurrency payments on the platform. Although Musk has not confirmed this move, the Dogecoin community remains optimistic about the prospect.
One compelling reason for this optimism is the fact that Musk’s electric vehicle company, Tesla, already accepts Dogecoin as a legitimate means of payment. Additionally, Musk revealed in a recent disclosure that he still holds Dogecoin, adding further credibility to the idea.
Dogecoin’s price surge and potential challenges
Upon the announcement of X Payments, Dogecoin’s trading volume experienced a notable surge, driving the price to reach as high as $0.090. However, the coin encountered resistance in this zone and had retraced to $0.085 at the time of writing.
The Relative Strength Index (RSI) for DOGE stood at 64.11, having briefly touched 76.72 earlier, suggesting that the cryptocurrency was temporarily overbought. This may have triggered a quick sell-off, resulting in the price dip.
Nonetheless, the Fibonacci retracement analysis indicates that Dogecoin’s price may have the potential to continue its ascent in the short to mid-term. The chart highlights the 0.618 Fibonacci level at $0.082, which serves as a potential support level should a pullback occur.
With the MACD golden cross and increased buying pressure, analysts speculate that DOGE could climb as high as $0.11, where the 3.618 Fibonacci level is positioned.
The road ahead for Dogecoin
The future trajectory of Dogecoin’s price largely hinges on developments related to X Payments and Elon Musk’s decisions. If the X platform embraces Dogecoin as a payment option, it could catalyze a significant upward movement, possibly inching closer to the ambitious $1 price prediction that has captivated the cryptocurrency community.
However, if Musk opts not to integrate DOGE into the platform, the path to $1 may become a more challenging endeavor.