Dogecoin is performing pretty well these days despite pressures from the ongoing bear market.
A quick recap:
After months of negotiations and threats of lawsuits, Elon Musk finally bought Twitter. On October 27 he uploaded a video with the description “Let that sink in!” and showed himself holding a sink as he entered the social media giant’s headquarters.
However, the billionaire’s path to acquisition has not been without bumps. It all started in July, when he announced the purchase was on hold because the company hadn’t met his condition of fixing the platform’s obvious spam problem.
Unfortunately, the deal went through and has already resulted in changes to the organizational structure of the company, including the sacking of key executives like Twitter’s CEO Parag Agrawal and CFO Ned Segal.
Entering Twitter HQ – let that sink in! pic.twitter.com/D68z4K2wq7
— Elon Musk (@elonmusk) October 26, 2022
Now, what does this mess mean for Dogecoin’s future? If you look at the weekly time frame, the price of Dogecoin has increased by 107%, as reported by CoinGecko.
Veteran trader Peter Brandt claims that this signals the end of the Dogecoin bear market. However, will this be the beginning of a bull market, considering the correlation between DOGE’s success and Elon’s Twitter acquisition?
— Peter Brandt (@PeterLBrandt) October 30, 2022
The Bear Market Guessing Game
Brandt recently tweeted that the recent price increase for DOGE shattered the market’s bear channel. Therefore, the coin’s bear market is over. However, Brandt is ambivalent about the possibility that the end of the bear market heralds the beginning of the bull market.
A common error made by inexperienced and aspiring traders is assuming that the end of a bear market phase signifies the beginning of a bull market. Typically, this notion is false, Brandt stated in another tweet.
Photo: Getty Images
This is particularly true for DOGE, given the price increase occurred only after Elon’s acquisition. The observed price movement might just be temporary. With Elon’s continuous backing for DOGE, though, an additional rally may be just around the corner.
A Dogecoin Correction In The Offing?
Normal are market corrections during rallies like what DOGE is setting. As of the time of writing, the market correction has already begun. According to CoinGecko data, DOGE has decreased by 14.2% during the past 24 hours.
Although this may appear to be a significant decline, bulls can establish themselves around $0.0891.
We predict the price to stabilize between the coin’s current trading range of $0.0891 and $0.1524, which was met with strong opposition in the $0.1524 price range.
However, DOGE bulls should be cautious and keep Peter Brandt’s words in mind.
DOGE/USD pair trading at $0.1180 on the daily chart | Featured image from Crast.net, Chart: TradingView.com