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Wednesday, February 15, 2023
HomeNewsDogecoin Plummets As Investors' Doubts After Musk Twitter Takeover Unfold

Dogecoin Plummets As Investors’ Doubts After Musk Twitter Takeover Unfold


Investors are elevating considerations 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 would give the corporate a worth of greater than $44 billion.

Related Reading | Dogecoin (DOGE) Struggles, Drops 9% After Elon Musk Twitter Buyout

Many folks thought that Musk shopping for Twitter would assist increase Dogecoin’s momentum. For 24 hours, it appeared as if they have been proper till the joy and curiosity rapidly dissipated from all sides.

Traders misplaced $281 million price of “longs” to liquidation up to now 24 hours. Overall the entire liquidation quantity reached $350 million. This is the third-largest degree within the month of April. Of that quantity, about one-third ($128 million) got here from bitcoin-tracked futures. While $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 occasion, their worth per share is buying and selling at $49, decrease than supplied ($54). In addition, 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, shedding its yesterday achieve | Source: 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 consider he’ll exit this deal by paying a $1 billion breakup payment. 

China is the most important 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 regulation enforcement.

The worry that Musk is not going to purchase Twitter has brought about the Dogecoin worth to crash. However, 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 possibility. 

Related Reading | Institutional Investors Bearish On Bitcoin, Ethereum. Here’s What They’re Buying

Dogecoin Price Prediction

The graph exhibits that the value of DOGE has been slowly dropping because it hit a excessive of $0.1725. This is named a double-top sample.

A double-top is normally an indication that the value will go down. The DOGE coin is now near the 25-day and 50-day shifting averages. In addition, the Stochastic Oscillator has moved above the oversold degree. It implies that the value will most likely hold happening. The subsequent key assist degree is $0.1100. If the value goes above $0.15, this can invalidate the bearish view. 


Featured picture from Pixabay and chart from Tradingview.com


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