Since the market collapsed in May 2022, the cryptospace has been heavily influenced by bears. The Bitcoin price was slashed by more than half, dragging the other popular altcoins lower in the meantime. Dogecoin, on the other hand, was speculated to be dead as it maintained a stagnant trend for more than a year. However, Elon Musk has again jumped in to rescue his favourite token and ignite the DOGE price rally.
But the question is whether DOGE prices will continue above rising levels or simply exhibit a short-term bounce as they do every now and then.
It would not be incorrect to say that Elon Musk’s acquisition of Twitter has halted the crypto space’s bearish trend. The rebound, however, has yet to be validated because the tokens have yet to overcome their respective resistance levels. Meanwhile, the DOGE price appears to be very close to undergoing a significant breakout beyond the consolidation that may kick-start a decent upswing very soon.
With the round of takeover, the bulls quickly jumped into action and propelled the price above important resistance levels. However, they failed to sustain the price as the bears dominated the rally and pushed the price back inside the triangle. The possibility of resuming an uptrend emerges as soon as the token manages to trade rapidly within the pennant.
The rally appears to be pretty short-lived as the active address count has considerably dropped after the recent spike, along with the trading volume. Conversely, social dominance continues to flutter high, which may certainly not impact the DOGE price on a larger scale.
There’s no doubt that Dogecoin’s volatility is on the rise with Elon Musk’s Twitter acquisition round, but it’s more important to find out when the hype will end.
