Dogecoin has been the running joke of the crypto world since it got hyper-famous during the pandemic. After months of stagnation, we are finally seeing some positive price movement with the memecoin.
Musk Twitter Move Could Be Pumping Doge
According to speculation, Dogecoin soaring has something to do with Elon Musk’s acquisition of Twitter. Elon Musk ultimately purchased Twitter after months of talks and legal threats. He posted a video of himself holding a sink as he entered the social media giant’s headquarters on October 27 with the caption “Let that sink in!”
What does this mean for Dogecoin’s future? According to CoinGecko, the price of Dogecoin has climbed by 107% when looking at a weekly time frame. Veteran trader Peter Brandt asserts that this means the Dogecoin bear market is coming to a conclusion. The success of DOGE and Elon’s purchase of Twitter raises the question, though: Will this signal the start of a bull market?
Brandt stated in a recent tweet that the bear channel in the market was broken by the recent surge in DOGE’s price. The bear market for the coin has therefore ended. Brandt is undecided, though, regarding the probability that the bear market’s finish will signal the start of the bull market.
End Of A Bear Market Doesn’t Mean A Bull Market
The assumption that the end of a bear market phase heralds the start of a bull market is one that novice and aspiring traders frequently make. In most cases, this assumption is incorrect, Brandt wrote in another tweet.
This is especially true for DOGE because the price hike only happened after Elon bought the company. The price movement that has been seen may just be momentary. However, given Elon’s ongoing support for DOGE, another surge could be on the horizon.
During rallies like the one DOGE is now on, market corrections are common. The market has already started to correct as of the time of writing. The DOGE price has dropped 14.2% during the last 24 hours, according to statistics from CoinGecko. DOGE bulls should exercise caution and remember Peter Brandt’s advice.
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