Dogecoin (DOGE) saw a modest uptick mid-week, rising 0.30% to approach the $0.26 level.
This gain follows reports that Elon Musk is in discussions to raise funds for X at a valuation of $44 billion—the same price he paid for the platform formerly known as Twitter in 2022. The news has rekindled market speculation about Dogecoin’s potential role in X’s evolving financial ecosystem.
Musk has a long history of securing major funding for his ventures, including Tesla, SpaceX, and xAI, his artificial intelligence startup currently seeking a valuation of up to $75 billion. With X exploring fresh financing, crypto traders are eyeing its possible effects on DOGE, which has often reacted to Musk’s business decisions.
X’s Financial Push and Dogecoin’s Potential Role
Musk’s ambition to turn X into an “everything app” includes a financial component, a vision he has outlined multiple times. In March 2024, X Payments LLC, the financial arm of X, secured additional money transmitter licenses in New Mexico, Oregon, and Illinois, bringing its total approvals to 22 U.S. states. These licenses would allow X to function similarly to PayPal or Venmo.
According to sources familiar with the matter, X is reportedly seeking to secure funding from investors at a valuation of $44 billion. Source: BloombergTV via X
Given Musk’s past as PayPal’s CEO, he is no stranger to navigating the regulatory landscape of digital payments. With speculation mounting over the potential introduction of crypto transactions on X, Dogecoin supporters are hopeful that the meme-based cryptocurrency could become a part of the platform’s financial framework. Musk’s continued endorsement of DOGE fuels this belief, with many traders seeing DOGE as a speculative bet on X’s financial future.
Dogecoin Price Action and Key Resistance Levels
Technically, Dogecoin is exhibiting the initial stages of a reversal of a bullish nature. The cryptocurrency is trading around $0.26, near significant levels of resistance. The daily chart shows DOGE approaching the middle Bollinger Band of $0.265, a significant level of resistance that, if it is breached, would see it shoot to $0.30.
Dogecoin (DOGE) is likely to retest the immediate resistance at $0.25 following the ongoing bullish sentiment. Source: FrankFx14 on TradingView
But DOGE is poised to sell at the upper Bollinger Band of $0.306, where previous attempts at a breakout have been rejected. If the coin is unable to stay above $0.265, rejection will send prices to the lower Bollinger Band of $0.225, potentially moving any meaningful breakout attempts further in the past toward $0.50.
Market Sentiment: Speculation and Volatility
Dogecoin has frequently displayed dramatic price swings, driven largely by sentiment and speculation rather than fundamental developments. On February 3, DOGE saw a sharp decline to $0.20 before rebounding 45% within the same day. Analysts, including crypto trader Cas Abbé, have pointed to Dogecoin’s recent Relative Strength Index (RSI) drop to 30, signaling an oversold condition that may soon lead to a reversal.
The Dogecoin price is required to reclaim its position above the $0.26 level to initiate a sustainable upside rally targeting $0.50. Source: FinCaesar on TradingView
“DOGE has reached its most oversold level since the February 3rd capitulation. Sentiment for memes has hit an all-time low, which also presents a good opportunity to accumulate cult memecoins. I’m expecting a short-term move towards $0.30, followed by a new yearly high,” Abbé stated.
Furthermore, Dogecoin’s price also forms a symmetrical expanding triangle pattern, a rare technical setup that shows heightened volatility and a potential breakout in either direction. If DOGE manages to close above the top line of this pattern at about $0.2923 on increased volume, it would signal a bullish continuation. On the other hand, failure of the support at $0.2403 may cause it to continue falling to $0.18.
The Road to $0.50: What’s Next for DOGE
While recent price volatility has cooled short-term optimism, some believe Dogecoin’s path to $0.50 remains unbroken—especially if Musk incorporates DOGE into X’s payment infrastructure. A boost in everyday usage through X’s upcoming financial products could drive demand for Dogecoin through the roof, positioning the cryptocurrency for a long-term bull run.
Dogecoin (DOGE) was trading at around $0.26, up 1.31% in the last 24 hours at press time. Source: Brave New Coin
However, there are obstacles to overcome. Regulatory focus, overall market sentiment, and technical resistance points will play a key role in deciding whether DOGE can penetrate its lofty price target. Optimistic investors see potential, but cynics caution that Dogecoin’s price history has been marked by speculative bubbles rather than long-term appreciation.
Watch – Dogecoin Price Prediction Video
For now, all eyes are on Musk’s next move. If X’s financial ecosystem expands and includes Dogecoin, the long-awaited push toward $0.50 may become more than just speculation.