Dogecoin Price Rises 13% on Elon Musk’s P2P Payment Announcement
The price of Dogecoin experienced a 13% increase on January 12, reaching $0.09, following the announcement by Elon Musk’s social media giant X about plans to launch a peer-to-peer (P2P) payment platform. The surge in Dogecoin’s value came shortly after X released a blog post titled “Transforming the Global Town Square,” outlining its roadmap for 2024, which included the introduction of P2P payments. This news generated a positive reaction among Dogecoin investors.
Elon Musk’s X and Dogecoin: A History of Affinity
Elon Musk and his company X have maintained a close relationship with Dogecoin over the years. In 2023, the Dogecoin logo was briefly added to X’s website, showcasing the mutual affinity between the two entities. With the recent announcement of X’s plans to launch a P2P network, speculation has arisen that this move could involve leveraging the existing Dogecoin network.
On-Chain Data Suggests Short-Lived Rally for Dogecoin Price
Despite the initial surge in Dogecoin’s price following X’s announcement, on-chain data trends indicate that this rally may be short-lived. Analysis of the data reveals that the dominant sentiment among Dogecoin markets remains bearish, even in the wake of X’s unveiling of official plans for P2P payments.
Bearish Market Momentum as Dogecoin Sell Orders Outweigh Buy Orders
A closer examination of the on-chain data reveals a concerning trend for Dogecoin. The total value of sell orders for Dogecoin currently stands at 798 million DOGE, significantly outnumbering the active buy orders of 752.4 million DOGE. This disparity between sell and buy orders indicates a bearish market momentum, suggesting that the current price increase for Dogecoin may not be sustainable.
Major Price Correction Possible for Dogecoin if Support Level is Lost
The current spot market dynamics and the overwhelming number of sell orders compared to buy orders for Dogecoin raise concerns about a potential major price correction. To validate this outlook, it would require the bears to breach the initial support buy-wall around $0.07. If this support level is lost, panic could set in among Dogecoin investors, potentially leading to even larger losses.
Alternatively, bullish traders may invalidate this pessimistic forecast if the Dogecoin price surpasses the $0.10 mark. However, in this scenario, the $0.095 resistance level could present a significant obstacle for further price growth.
Analyst comment
Positive news: Dogecoin Price Rises 13% on Elon Musk’s P2P Payment Announcement
Analytical Perspective: The market for Dogecoin is likely to experience short-term growth due to Elon Musk’s announcement of plans to launch a peer-to-peer payment platform. However, on-chain data suggests that this rally may be short-lived and the market sentiment remains bearish. The overwhelming number of sell orders compared to buy orders raises concerns about a potential major price correction if the support level is lost. However, if the price surpasses the $0.10 mark, bullish traders may invalidate the pessimistic forecast. The $0.095 resistance level could present an obstacle for further price growth.
