Dogecoin Gains Momentum Amid Twitter’s Rebranding.
Dogecoin (DOGE) experienced a remarkable 5% surge following Twitter’s rebranding announcement on Monday. The meme-inspired cryptocurrency bucked the broader market slide, as Bitcoin (BTC) slipped to just below $29,100 during the European morning hours.
Elon Musk’s Influence on Dogecoin
Elon Musk, the owner of Twitter, is in the process of rebranding the platform to “X,” a part of his artificial intelligence-focused group of companies known as X.AI.
In a notable move, Musk added Dogecoin’s ticker logo to his bio, sparking speculation that the cryptocurrency might play a more significant role in the rebranded company.
Bitcoin Faces Liquidation Pressure
Amidst the market turbulence, over $30 million worth of long positions, accounting for more than 96% of all leveraged futures positions, were liquidated in a single hour on Bitcoin-tracked futures. Such liquidations occur when a trader’s leveraged position is forcefully closed due to an insufficient initial margin or a total loss.
These large liquidations can sometimes signal a potential turning point in the price movement, providing valuable information for traders.
Altcoins Experience Price Decline
Bitcoin’s decline also triggered a fall in several major tokens, with Tron’s TRX and Polygon’s MATIC losing 3.4%, and Solana’s SOL plummeting nearly 5%. With a lack of bullish news and a relatively quiet summer, analysts believe that the bearish pressure may continue to impact Bitcoin prices, potentially leading to a decline to the $27,000 level.
Alex Kuptsikevich, FxPro’s senior market analyst, highlighted that the $27,000 level is a crucial support level, marked by the lower boundary of the rising channel from November’s lows and the 200-week moving average.
Simons Peters, a markets analyst at eToro, echoed this sentiment, stating that Bitcoin’s price is gradually retreating from recent highs. He also emphasized that the current period has been unusually calm for major cryptocurrencies, with investors eagerly awaiting positive developments to guide their investment decisions.
Uncertainty Prevails as Traders Wait and See
As the cryptocurrency market continues to experience volatility, uncertainty looms large. While Dogecoin’s surge following Twitter’s rebranding offers a glimmer of hope for its supporters, Bitcoin’s decline and the overall lack of positive news leave investors cautiously waiting for the market’s direction to become clearer.
Lastly, as traders hold their positions, the industry eagerly anticipates developments that could bring positivity back to the crypto market.