Elon Musk and Grayscale Investments are likely behind the latest Dogecoin price rally.
Dogecoin (DOGE) price is up roughly 5% in the last 24 hours, mirroring trends elsewhere in the cryptocurrency market.
Grayscale news pumps Dogecoin
Despite DOGE price being down 2.4% on Aug. 30, it’s still up 5% from yesterday’s lows, while the total crypto market capitalization has gained 4.5%.
Related: Why is Bitcoin price up today?
Dogecoin’s price started rallying after the U.S. Securities and Exchange Commission’s (SEC) crackdown on the crypto sector suffered a major setback.
On Aug. 29, a federal court ruled that the SEC randomly prevented Grayscale Investments, a crypto investment platform, from converting its Bitcoin (BTC) trust into an exchange-traded fund (ETF). Grayscale’s win raised hopes that a spot Bitcoin ETF in the U.S. will become a reality.
99.99999% of the world doesn't know that the SEC has to decide on 7 BTC ETFs within the next 3 days:
-blackrock
-bitwise
-vaneck
-wisdomtree
-invesco
-fidelity
-valkyriethe suits at our doorstep
— odin free (@odin_free) August 29, 2023
BTC price jumped nearly 8% on the day of the ruling, lifting other crypto assets with it, particularly as Bitcoin and Dogecoin remain in lockstep with a correlation of 0.96.
Elon Musk acquires crypto license for X
Dogecoin’s gains in the past 24 hours also coincide with Elon Musk’s foray into payment services for X (formerly known as Twitter).
On Aug. 28, Rhode Island’s regulators granted X a currency transmitter license, enabling the social media giant to offer financial services, including crypto. The news started going viral on Aug. 29.
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
Musk, a self-proclaimed Dogecoin supporter, has previously hinted at adding DOGE payments on X. Since then, rumors about DOGE payments on the platform have boosted prices on several occasions.
DOGE price bear flag
From a technical standpoint, Dogecoin has traded inside what appears to be a bear flag pattern since Aug. 17. As a result, DOGE price remains inside a narrow range, which may result in a full-fledged breakdown in the coming weeks.
A bear flag as typically considered a bearish continuation pattern. It resolves after the price breaks below its lower trendline and falls by as much as the height of the previous downtrend (aka flagpole).
As a result, the bear flag target for DOGE/USD is around $0.051 by September, down over 20% from current price levels.
Nonetheless, analyst Crypto Rover argues that Dogecoin’s strong fundamentals can instead bolste Dogecoin price in the long term.
Related: Grayscale wins the court battle, but what does this mean for a spot Bitcoin ETF?
Notably, DOGE price is testing a multi-year descending trendline resistance as support seven weeks after breaking above it to potentially confirm the breakout.
Nonetheless, this DOGE price chart presents two key technical resistances: the 50-week exponential moving average (50-week EMA; the red wave) near $0.079 and the 200-week EMA (the blue wave) near $0.086.
Breaking above these key levels creates a price target of $0.106, which served as support in February 2022, and resistance in October 2022 and April 2023.
Therefore, a 60% price rally by 2023’s end is on the cards, but breaking the two key resistance levels will be critical for the bulls in the coming weeks and months.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
