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Elon Musk, who earlier this year called Bitcoin “brilliant”, revealed his favorite currency earlier this month.
He said in a tweet:
Dogecoin might be my fav cryptocurrency. It’s pretty cool.
Dogecoin might be my fav cryptocurrency. It’s pretty cool.
— Elon Musk (@elonmusk) April 2, 2019
He made the tweet after the official Dogecoin account asked who should become the cryptocurrency’s next CEO (it was a joke). Musk received 54 percent of the vote. CCN covered the tweet here.
The official Dogecoin then anointed Musk the CEO. “Looks like you’re the CEO now @elonmusk, DM us where to email the access codes :-D”
Musk tweeted several times about the cryptocurrency In one such tweet he wrote, “Dogecoin rulz.”
Dogecoin rulz pic.twitter.com/flWWUgAgLU
— Elon Musk (@elonmusk) April 2, 2019
So, with April winding down, we thought we’d take a look at the Dogecoin chart year to date.
Bulls are looking to break above the exponential moving averages (EMAs) on Dogecoin and should they find success, the crypto’s price will continue on a bullish trend that increases its chances of a powerful pump in May.
A general uptrend began on April 1 before reaching a high of 84 Satoshis three days later. April 13 saw Dogecoin break out from a falling wedge and the coin has now found stability at around 54 Satoshis.
The meme-inspired altcoin faces soft resistance first at 58 Satoshis with a more indicative resistance level of 69 Satoshis. Good reason for optimism exists: the 200 EMA level is at 55 Satoshis, at the time of writing, so this should be fairly routine for bulls to break.
Dogecoin pumps every eight months:
Source: TradingView
It is staggeringly routine for Dogecoin to undergo a price spike every eight months and almost without fail – one month in 2016 bucked this trend – so bullish signs will perhaps carry more weight now than ever.
A flurry of activity in early April may have been this pattern in play, although a spike to 84 Satoshis before a fall to similar price levels seen in 2019 so far does not closely match the previous pumps.
If bullish indicators remain strong then a bounce to 80 Satoshis is likely and perhaps even further beyond; there will be those holding out for a return to the 2018 high of over 100 Satoshis. They might get it. Dogecoin has a history of pumping rapidly within the space of a few days.
A ‘buying spree’ for Dogecoin?
One Twitter user found transactions to the tune of millions that constituted more than 20% of all Dogecoin bought and sold that day, more curious for the fact that appearances suggest they represent the authentic buying and selling of the coin.
The existence of large scale transactions does not on its own mean that Dogecoin will enjoy a sudden price hike. It remains a possibility among a host of reasons for why individuals make such high-profile coin movements, though it could not be taken as an early indicator until after a pump.
Does Dogecoin have a future?
Critics say Dogecoin is not serious crypto but a sort of extended joke, though it remains the 26th largest coin in the market with a 24h trading volume of $33,002,526 and a market cap of $335,233,515.
Dogecoin also recently secured a listing on Singapore-based exchange Huobi with the three trading pairs of DOGE/USDT, DOGE/BTC and DOGE/ETH. Within 24 hours, Huobi Global was the third largest Dogecoin market with around $19 million in trading volume.
Another pump could bring Dogecoin into the limelight again. While it still has no listing on Binance, the meme-in-a-coin has made impressive strides towards an air of legitimacy that convinces beyond its faithful community. If the market can continue to offer a balance of stability and reward to investors then its mid-term future might be all but secure.
Not long after Musk proclaimed that Dogecoin was his favorite cryptocurrency, popular Chinese exchange, Huobi, listed it for trading.
Musk has somewhat of a history tweeting about cryptocurrency. The tech billionaire seems to stay up on cryptocurrency news.
“Cryptocurrency is my safe word,” he once proclaimed.
On the Ark Invest podcast, Musk confirmed his confidence in cryptocurrency. “Paper money is going away and cryptocurrency is a far better way to transfer value than pieces of paper,” he said. While Dogecoin might be Musk’s favorite cryptocurrency publicly, he’s also had some favorable things to say about the original cryptocurrency.
He said on a podcast:
“I think the Bitcoin structure is quite brilliant. There seems like there is some merit to Ethereum as well, and obviously others. But I’m not sure if it’s a good use of Tesla resources to get involved in cryptos.”
Tesla, however, has no plans of incorporating blockchain.
“We’re really just trying to accelerate the advances of sustainable energy,” he said. “One downside of Bitcoin is in computationally; it’s quite energy intensive. There has to be some kind of constraint on the creation of crypto. It’s very energy intensive to create incremental bitcoin at this point.”
He adds: “It bypasses currency controls. Paper money is going away, and crypto is a far better way to transfer value than pieces of paper. That’s for sure.”
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