Dogecoin: Elon Musk buys Twitter as DOGE falls 6% – Is a bullrun in the cards?

• According to on-chain data,  Dogecoin has a circulating supply of 136,667,126,383 units with 5,094,129 holders.
• Market strategists are closely monitoring DOGE price together with Musk’s tweet updates for volatility check.

Dogecoin has pumped significantly compared to other digital assets in the past few days after Elon Musk, Tesla CEO and SpaceX founder, proceeded with his Twitter acquisition deal. According to our latest crypto prices data, Dogecoin (DOGE) is trading at around $0.084641, up approximately 42 percent in the past seven days.

For comparison purposes, Shiba Inu, the closest meme coin to Doge by market cap, has gained approximately 10 percent in the last seven days. Ethereum (ETH) and BNB are up approximately 19 and 8 percent, respectively, in the past seven days.

In a letter to advertisers, Musk noted that most speculation about why he bought Twitter is wrong. “I wanted to reach out personally to share my motivation for acquiring Twitter. There has been much speculation about why I bought Twitter and what I think about advertising. Most of it has been wrong,” Musk noted.

However, since Musk has in the past given Dogecoin priority among other digital assets, speculative investors are betting on Doge getting a position in Twitter’s payments. Without a formal announcement, global speculation on Dogecoin has fueled the meme lord to a bullish stance.

From a technical standpoint, Dogecoin’s weekly 200 MA is likely to be converted to a support level should the meme coin close Sunday above $0.77. Otherwise, should the digital asset close Sunday exchanging hands above $0.81, the falling trend will be invalidated on a weekly chart. 

As such, market strategists are closely monitoring Dogecoin price together with Musk’s tweet updates. Furthermore, the two have shown a great correlation in the past few years

Dogecoin market outlook

The meme coin industry has significantly outperformed the traditional digital assets market, hence confirming Graham’s law. Gresham’s law states that bad money drives out good money. 

According to Gresham’s 16th-century observation, if coins containing different metals have the same legal tender value, the coins made of the cheaper metal will be used for payment, while those made of the more expensive metal will be hoarded or exported, and thus tend to disappear from circulation.

According to on-chain data,  Dogecoin has a circulating supply of 136,667,126,383 units with 5,094,129 holders. As a proof-of-work (PoW) secured blockchain, Dogecoin currently has a total hashrate of 529.34 (TH/s) and a mining difficulty of 7.44 (M).

With Twitter privately held by Dogecoin’s godfather, Dogecoin speculation could spell out a new bull case scenario.

the bird is freed

— Elon Musk (@elonmusk) October 28, 2022

Notably, Dogecoin is ranked nine by market cap after the recent rally. During the 2021 crypto bull market, Dogecoin was among the best-performing coins. The meme coin moved from consolidating below $0.002 to trade as high as 0.77, over 385x.