DOGECOIN IS ON FIRE

In case you have not heard that Dogecoin has a huge pump of about 120% in less than 7 days. According to the coin market cap, Dogecoin is this week's top Altcoin and second place is not even close. A lot of questions is going through people's mind right now. Did the recent acquisition involving Elon Musk become the major reason why we are seeing a huge pump in Dogecoin or are some other factors that we are not aware of? Currently, Dogecoin is up about 120%, its price is at $0.13 and it is down about 5% as of the time of writing. It was just yesterday, Dogecoin pump up to $0.15893.

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If you look at the Dogecoin daily chart, you will see that some coin has been trading at the overbought level since April last year with an RSI indicator of 88.5. An overbought level doesn't always mean an immediate bearish reversal what it does is that show the current buying level that could either consolidate correctly downwards. Another reason why Dogecoin experienced a massive bull rally was that there was a huge short squeeze. Dogecoin futures rack up about $90m in liquidation, this occurred this weekend and it was because of the news that came from Elon Musk.

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The simple explanation of why Dogecoin pump is because we got the news that Elon Musk is taking over Twitter. If you didn't know already, it was announced on October 25th that Elon Musk has acquired Twitter for the sum of 44 Billion dollars. After the news of the Twitter acquisition, we got news that Elon Musk fired Twitter's top 3 executives. The news is very important because it shows that Elon Musk is taking this Twitter acquisition very seriously. Right now, Elon Musk trying is his best to bring more value via Twitter, and as you know already that Elon Musk is a lover of crypto.

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I think we should expect Twitter to start accepting crypto deposits and withdrawals. We are getting some interesting news this year, it is giving a good sign that the bull run is imminent. Elon Musk is looking to the future on how he can add Dogecoin and other cryptocurrencies to Twitter. Some of the big names within the crypto world like CZ and Anderson are already helping Elon Musk bring Twitter into web 3 whenever they are already. It is very important to know Elon Musk's goal to transform Twitter into the most ideal social media platform for users. The has been a rumor that has been going around seen last year Elon Musk will be adding Dogecoin tipping on the Twitter platform and that means instead of getting a tip with a dollar or Euro, it will be Dogecoin.

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If will start seeing Dogecoin as a crypto used for tipping people on Twitter, it will bring the utility of Dogecoin back to life. Dogecoin has a very strong community, they still have some big OG in their community. We can tell where the price of Dogecoin will reach because it is still considered a meme coin by some people even though some strong believers of it don't consider it a meme coin. We still have not seen the full utility of Dogecoin, until it starts to have a use case, I will consider it a meme coin.

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