- Elon Musk raises hopes that Dogecoin may be used to power X payments.
- DOGE holders hold their position despite short-term pressure.
Twitter’s recent rebranding to X caught the attention of the Dogecoin community. This was due to speculation that the day DOGE becomes a payment processor for the microblogging platform is getting closer.
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The community hoped that the Dogefather himself, Elon Musk, would include Dogecoin in Twitter before it was rebranded. Now the rebrand offers an opportunity for the social platform to evolve. So it was interesting when Elon Musk mentioned in an interview recently that DOGE could be used to pay for content.
Shall #Dogecoin become the official currency of ?????pic.twitter.com/A4aJuXTxIZ
— LunarCrush (@LunarCrush) August 5, 2023
For context, Musk was in a dialogue exploring ways for non-subscribers to access content. It therefore did not confirm plans to use DOGE for this purpose. Nevertheless, it didn’t stop Dogecoin fans from getting excited.
Dogecoin bulls are taking over after Elon’s statement
That excitement is especially reflected in DOGE’s price action, which, at the time of writing, managed to post a 4.64% gain over the past 24 hours. The cryptocurrency has been on a downward trajectory for the past few days. At the time of writing, it changed hands for $0.074.
Source: TradingView
The market reaction points to a potentially important catalyst for Dogecoin if X adopts Dogecoin as a means of payment on its network. But will that become reality? Well, the fact that Elon Musk used it as an example may indicate that he and his X team have considered it. Also, the latest upside potential could be enough to push DOGE back to the bullish trajectory it has maintained since June.
Dogecoin maintains positive investor sentiment
Although Dogecoin has experienced a significant downside over the past 7 days, it has maintained an upbeat sentiment. This is evidenced by the steady rise in weighted sentiment, indicating that most analysts are maintaining their expectations. The same goes for the derivatives segment which has maintained a positive funding rate for the past 3 weeks.
Source: Sentiment
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Dogecoin’s average coin age has also seen a steady increase over the past 4 weeks. Confirmation that most DOGE holders were still into their coins, even as traders focused on short-term gains.
While it has maintained an overall bullish trajectory over the past 2 months, Dogecoin has also suffered from the sluggish market conditions. This has been evident most of the time in low volume over the last 4 weeks.
Source: Sentiment