Elon Musk’s Twitter investment could trigger a potential 130% rally for Doge from current levels

cnbctv18.com:

On Monday, April 4th, 2022, Tesla CEO and Dogecoin proponent Elon Musk scooped up 73,486,938 shares of social media giant Twitter in a $2.89 billion deal. The move entitled him to a whopping 9.2 percent stake in the company. It also catapulted him to the top of the stakeholder leader board, even overtaking Twitter co-founder Jack Dorsey.

This is as per an official filing by the SEC.Musk is not only an ardent supporter of cryptocurrencies but is also known to use Twitter as a platform to express his views on the same. In fact, his posts have often swung the prices of some cryptocurrencies by large margins. Along with his investment, Musk has also officially joined Twitter’s Board of Directors.

However, according to the agreement, Musk cannot further his stake beyond 14.9 percent.Musk’s investment has also had a ripple effect on Dogecoin, a meme coin that he backs vehemently. Dogecoin has been dragging a ‘falling wedge’ pattern on the price charts since May 2021. This pattern (refer to the figure below) builds when the underlying asset prepares for another bull run.Also Read| How Norway has turned into a green oasis for Bitcoin miningMusk’s investment came just in time to kick off a trend reversal for Doge.

It could also unlock the potential for the meme coin to leapfrog back to its price of $0.37, which was observed in June 2021. That’s ~130 percent above the current price of $0.163.When a falling wedge shows a trend reversal (breaks above the upper trend line as shown below), it typically bolts to bridge the gap to the point from where the descent started. In this case, it is $0.3765.