Dogecoin Price Slowly Forms a Rising Wedge Pattern

Dogecoin price rose on Tuesday as investors cheered the new reports on Elon Musk’s ambitions on payments. The coin jumped to a high of $0.095, the highest point since December 11 of last year. It has jumped by more than 39% from the lowest point in 2022.

Elon Musk’s Twitter ambitions

Dogecoin is associated with Elon Musk, the second-richest person on earth with a net worth of over $150 billion. Before he endorsed the coin, it was languishing as one of the many cryptocurrencies in the industry. Today, DOGE is a multi-billion dollar cryptocurrency that is owned by millions of people. 

DOGE price rose after the Financial Times reported about Elon Musk’s plans for Twitter. He wants to make Twitter a leading payments provider. For example, he could build a product that makes it possible for people to send money to each other. Also, the payment platform could have features that enable people to pay to companies. 

According to the FT, Musk will also seek to introduce crypto in Twitter’s ecosystem. If this happens, he will likely introduce Dogecoin, which is his most favorite’s cryptocurrency. Tesla, his main company, has already started accepting DOGE for its accessories business. 

But there are two main unknowns. First, it is unclear when the new payment service will be launched. Second, it is still unclear whether users will embrace using Dogecoin in Twitter. With Tesla’s accessories, it is estimated that only a tiny percentage of users pay using the coin. 

Therefore, Dogecoin price rose not because of anything major but because of this enthusiasm. In most periods, such rallies don’t last for a long time.

Dogecoin price prediction

Turning to the 4H chart, we see that the DOGE price has been in a bullish trend in the past few weeks. This price action is in line with that of other cryptocurrencies like ETH and BTC. The coin has moved above all moving averages. It has also moved slightly below the 61.8% Fibonacci Retracement level.

A closer look also shows that the coin is in the process of forming a rising wedge pattern, which is usually a bearish sign. But the wedge is yet to reach its confluence level. Therefore, there is a likelihood that the coin will continue consolidating and then have a bearish breakout. If this happens, the key level to watch will be at $0.085.