Dogecoin (DOGE) Risks 40% Plunge despite Musk-Twitter Euphoria

Elon Musk acquiring Twitter for $44B had Dogecoin surging about 25% within the past 24 hours, but correction risks persist.

Dogecoin (DOGE) experienced upside price movements over the past day. That came after the token’s cheered Elon Musk acquiring Twitter for $44B. A positive mood saw the original canine-themed crypto surging towards $0.17 on 25 April, though still 77% down from the May 2021 lifetime highs.

Twitter and DOGE Price Action

Dogecoin experienced an approximately 25% over the previous 24 hours to $0.15. That confirmed that market players considered Musk’s Twitter buy a lucrative event for the meme token. Remember, Elon Musk has been a long-time Dogecoin supporter.

Recently, the Tesla billionaire advised the Twitter team to include DOGE payments for the Twitter blue subscription service. The comments emerged one year after the social media platform unveiled plans to increase its revenues by 2023, doubling to $7.5 billion. That raises hopes that Musk’s 100% acquisition would see Twitter expedite its future sales via an additional Dogecoin payment functionality.

In January, Musk announced DOGE payments for selected merchandise.

Dogecoin Retracement Risks

Meanwhile, DOGE encounters interim plummet risks after the impressive run-up over the previous 24 hours. The meme coin launched correction after retesting a multi-month plunging trend-line as a resistance.

Surprisingly, the trend-line comprised a descending channel formation, suggesting the possibility of an extended crash by another 35 to 40% before the Q2 end.

Also, the 200-day EMA wavering around $0.16 elevates the downside risks to the channel’s bottom trend line. Remember, the 200-day Exponential Moving Average has capped DOGE’s uptrend attempts since Nov. 2021.

Contrarily, a massive upward continuation past the channel’s topside trend-line and the 200-day Exponential Moving Average would support Dogecoin to test $0.20 during Q2. Meanwhile, this vital level also matches the 0.382 Fibonacci of the move between $0.35 high and $0.10.

For now, Dogecoin explored bullish actions, trading at $0.1604. The remarkable uptrend had the meme token on the top ten crypto list, jumping four ranks within a day. However, the crypto seems ready to retrace after the staggering upticks.

What are your opinions on Dogecoin and Musk-Twitter deal? You can share your thoughts below.

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