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Key Insights:
- Dogecoin father Elon Musk is finally expected to close the Twitter deal this week.
- In early October this year, when the deal got revisited for the first time in months, Dogecoin’s prices reacted again.
- Twitter’s price per share rose 12%, and Dogecoin’s price rose 8% despite bearish crypto market conditions.
Billionaire and Tesla founder Elon Musk may finally be buying Twitter this week – and according to sources, the Twitter deal is expected to close by Friday.
Bloomberg reports that in a video conference call yesterday, with the banking institutions expected to provide funding for the buy-deal, Musk himself mentioned that the Twitter acquisition would likely be finalized on the 28th of October.
Recall that the Tesla and SpaceX CEO originally offered to buy the social media giant for a total of $44 billion earlier this year, for $54.20 per share.
All of that happened before the deal was abruptly called off because Twitter refused to provide enough information about the number of fake accounts (or bots) on the platform. The following week after the buy-deal was canceled, Twitter sued Musk for breach of contract and demanded $1 billion in compensation.
This new deal came after months of going back and forth between both parties and is expected to happen on the original $44 billion and $54.20 per share deal.
As expected, several changes are bound to take effect as of Friday, when the deal gets finalized.
The business magnate has mentioned that he plans to cut down the Twitter workforce by 75% from 7,500 employees to less than 3000, and possibly incorporate crypto and blockchain-related payment systems into the platform.
Naturally, the names of cryptocurrencies like Dogecoin and Shiba Inu come up in these situations.
Dogecoin and Shiba Inu Expected To React To Twitter
In April 2022, when the Twitter buy was first proposed, the social media platform’s shares skyrocketed 18% in pre-market trading, before falling to around $48 per share.
However, Twitter’s shares weren’t the only assets that went parabolic. Cryptocurrencies like Dogecoin and its canine cousin, Shiba Inu, reacted as well. Dogecoin, for example, was trading at a low of about $0.138 before the news of the deal hit the internet. When the news broke, DOGE jumped 5.6% to $0.146.
Shiba Inu, on the other hand, jumped from $0.000026 to $0.000027.
While these price increments aren’t much compared to the rest of the crypto market, they are relatively high price jumps, considering how the entire crypto market was in the middle of a heavy dip at the time.
In early October this year, when the deal got revisited for the first time in months, Twitter and Dogecoin’s prices reacted again. Twitter’s price per share rose 12%, and Dogecoin’s price rose 8% despite bearish crypto market conditions.
Chart showing Dogecoin’s price action reacting to the Twitter deal in early October | Source: Tradingview
Musk’s love affair with Dogecoin also appears to be as strong as ever.
Recall that the billionaire entrepreneur is the subject of an ongoing lawsuit in which he was accused of shilling cryptocurrency via a pyramid scheme. Dogecoin’s price reaction to news involving Musk over the last two years is also an interesting factor in this case.
Musk has also begun accepting payments in Dogecoin for electric cars and other services at his companies, Tesla, SpaceX, and quite recently, The Boring Company’s “Burnt Hair” perfume brand.
Dogecoin In The Charts
The crypto market has been on the rise for the past day. Bitcoin, the flagship cryptocurrency, is up by 7% after rising from $19,278 to $20,700, where it now sits at the time of writing.
Naturally, the crypto market has reacted accordingly, and most cryptocurrencies are up by double digits, with Dogecoin being no exception.
The memecoin is up by 10.3% at the time of writing, after rising from a low of $0.058 to $0.06, where it now sits.
Chart showing a rise in Dogecoin’s price action and RSI | Source: Tradingview
Dogecoin’s RSI currently shows oversold conditions at 76 and may indicate an impending correction before further price movement.
Over a longer timeframe, however, Dogecoin appears to be testing the multi-month resistance around $0.066 and is expected to consolidate for a while before either the bulls or bears take action.
Chart showing Dogecoin’s possible price trajectory after hitting the $0.066 support | Source: Tradingview
If the bulls apply sufficient pressure, the price of Dogecoin may break the $0.066 resistance and resume its upward trajectory toward $0.09, and possibly $0.1.
Chart showing Dogecoin’s possible rally to $0.09 if a breakout occurs | Source: Tradingview
Shiba Inu In The Charts
Like Dogecoin, Shiba Inu has also increased in price over the last day.
SHIB is up by 5.43% in the last 24 hours at the time of writing, after rising from a low of $0.00000984 to $0.00001048 where it now sits.
Chart showing price increase in Shiba Inu | Source: Tradingview
Shiba Inu, like Dogecoin, is currently testing a crucial support level and may either break out of the top or break reverse and retest its previous support, depending on the strength of its bulls over the bears.
If the bulls manage to apply significant pressure to break the $0.00001048 resistance, the price of Shiba Inu may rally to the next support around $0.000012.
However, if the bulls are unable to initiate a breakout, Shiba Inu may reverse, under the influence of the bears, into a retest of the $0.00000953 zone.
Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
Crypto Writer
Jim Haastrup is a freelance blockchain and metaverse writer. He helps founders, investors, startups, crypto, and blockchain enthusiasts connect with their audience and win investment through the written word.
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