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DOGE Rumor-Influenced Rally Rejected at Pattern Resistance

Published 03/08/2023, 16:32
Updated 03/08/2023, 16:45
© Reuters DOGE Rumor-Influenced Rally Rejected at Pattern Resistance
DOGE/USD
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  • Rekt Capital observed notable price behavior on the DOGE/USD chart.
  • DOGE’s price is experiencing rejection at a pattern resistance.
  • The recent DOGE rally was triggered by rumors attaching DOGE to Twitter.

Renowned crypto trader and analyst Rekt Capital observed a notable price behavior on the DOGE/USD price chart. In a Twitter post, the analyst noted that DOGE’s price is experiencing rejection at a pattern resistance. Rekt Capital thinks recent rumors of DOGE could have triggered the rejection of the meme coin’s latest price rally.

After Elon Musk rebranded Twitter to X, rumors emerged that he would adopt DOGE as a payment option for services on the social network. Many users believed implementing DOGE payments formed part of the rebranding process, considering the various payment aspects Musk continues introducing on Twitter (now rebranded to ‘X’).

Musk rebranded Twitter on July 23, 2023, and changed the social network’s logo on its desktop version from the bluebird to the letter ‘X’ on a black background. DOGE’s price rallied almost 20% 72 hours after the rebrand, following rumors that Musk would add it as a payment method on Twitter (X). The price rally did not last long, as a horizontal resistance at $0.0838 established on April 26 repelled it.

DOGEUSD Daily Chart (Source: TradingView)

In his tweet, Rekt Capital shared a screenshot showing that besides the horizontal resistance at $0.0838, a downward trendline from Q4 2022 is also holding down the DOGE price. Following this price development pattern, the crypto analyst confirmed that the recent price rally DOGE experienced was simply a result of the euphoria following the rumor associating DOGE with Twitter.

The rumored relationship between DOGE and Twitter has existed for the past few years following Elon Musk’s open support for the flagship meme coin. Musk has influenced the DOGE price trajectory several times by posting an indirect message on Twitter or changing his profile photo to reflect the meme coin.

The post DOGE Rumor-Influenced Rally Rejected at Pattern Resistance appeared first on Coin Edition.

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