August 17, 2022

Traders are elevating issues about Elon Musk’s acquisition of Twitter. After hovering to a multi-week excessive worth, the Dogecoin has crashed by 20% and is buying and selling at $0.1381 with a complete market cap of round $18 billion.

In an announcement on Monday, Twitter agreed to be acquired by Tesla and SpaceX CEO Elon Musk for $54 per share. This may give the corporate a price of greater than $44 billion.

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Many individuals thought that Musk shopping for Twitter would assist enhance Dogecoin’s momentum. For twenty-four hours, it appeared as if they have been proper till the thrill and curiosity shortly dissipated from all sides.

Merchants misplaced $281 million price of “longs” to liquidation up to now 24 hours. Total the entire liquidation quantity reached $350 million. That is the third-largest stage within the month of April. Of that quantity, about one-third ($128 million) got here from bitcoin-tracked futures. Whereas $92 million arose from ether futures. Futures monitoring dogecoin misplaced $24 million, much like Tuesday’s loss.

Doubts On Musk’s Twitter Acquisition

Some Twitter shareholders are involved that the acquisition might not undergo. For example, their worth per share is buying and selling at $49, decrease than supplied ($54). As well as, the corporate at the moment has a market worth of about $37 billion – $6 billion lower than when this deal first started.

DOGE is at the moment buying and selling at $0.138, dropping its yesterday achieve | Supply: BTC/USD chart from Tradingview.com

The acquisition of Twitter by Tesla might have unexpected penalties for the corporate, notably its influence on Elon Musk. Many imagine he’ll exit this deal by paying a $1 billion breakup price. 

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China is the largest marketplace for Tesla, and the corporate has a big plant over there. So there’s an opportunity that if Musk tweets one thing unfavorable about China, the nation can punish him. China has strict legal guidelines in opposition to free speech, and anybody who breaks them dangers being penalized by legislation enforcement.

The worry that Musk won’t purchase Twitter has brought about the Dogecoin worth to crash. Nonetheless, it’s believed most buyers assume if this acquisition closes, it’ll be excellent news for DOGE as a result of he vows so as to add them as a fee choice. 

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Dogecoin Worth Prediction

The graph exhibits that the worth of DOGE has been slowly dropping because it hit a excessive of $0.1725. That is known as a double-top sample.

A double-top is often an indication that the worth will go down. The DOGE coin is now near the 25-day and 50-day shifting averages. As well as, the Stochastic Oscillator has moved above the oversold stage. It signifies that the worth will most likely maintain taking place. The following key assist stage is $0.1100. If the worth goes above $0.15, it will invalidate the bearish view. 

 

                Featured picture from Pixabay and chart from Tradingview.com