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Dogecoin price prediction as Musk nears deal to buy Twitter

Dogecoin price prediction as Musk nears deal to buy Twitter

Last updated 5th Aug 2022
Disclosure
  • Dogecoin price crashed to the March 23rd low.
  • Elon Musk and Twitter are nearing an acquisition deal.
  • Elon Musk is one of the biggest Dogecoin supporters.

The Dogecoin price crashed to the lowest level since March 23rd even as Elon Musk neared a deal to buy Twitter. DOGE crashed to a low of $0.124, which was about 31% below the highest level this month. It has dropped in the past three straight days. Here’s how you can buy Dogecoin while its on the low.

Elon Musk to acquire Twitter

Elon Musk unveiled his plan to acquire Twitter earlier this month. In a statement, he said that he had settled on his best offer being at $54, in a deal that would value the social media company at about $54 billion.

In a statement last weekend, the company adopted a poison pill in a bid to prevent a hostile takeover. And in response, Musk signaled that he will launch a tender offer in a deal n his attempt to buy the company.

Last week, Musk also unveiled his funding for the deal. He plans to use a combination of debt from the likes of Morgan Stanley to acquire Twitter.

Now, according to the Wall Street Journal, Elon Musk is close to reaching a deal with the company. The two sides met on Sunday to deliberate on the proposal. Musk also met with a few Twitter shareholders as he made the case for the company.

Musk insisted that the management faced a major challenge pushing its stock price to where he proposed it. He believes that his proposals of cutting costs and making it a town square of ideas will lead to more activities in the network.

Musk’s acquisition of Twitter will be a good thing for Dogecoin price. One of his strategies of turning around the company is on accepting Dogecoin for its transactions. As a result, most analysts believe that it would lead to more Dogecoin volume. However, in the long term, the impact of the deal will be a bit limited.

Dogecoin price prediction

The daily chart shows that the DOGE price has been in a strong downward trend in the past few months. The coin’s price continued the sell-off even after the positive news about Musk’s acquisition of Twitter. It has moved below the 25-day and 50-day moving averages while the MACD has moved below the neutral level. The Stochastic Oscillator has dropped below the oversold level.

Therefore, the coin will likely retest the important support level at $0.1100, which was the lowest level on March 12th. It will then resume the bullish trend later this week as more clarity on Twitter emerges.

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Crispus Nyaga

Crispus Nyaga

Crispus is a financial analyst with over 9 years in the industry. He covers cryptocurrencies, forex, equities, and commodities for some of the leading brands. He is also a passionate trader who operates his family account. Crispus lives in Nairobi with his wife and son.