Elon Musk’s platform, formerly known as Twitter, has successfully secured the necessary permits to commence cryptocurrency transactions, trading, and payments within its system. The platform, referred to as X, has been granted trading licenses in seven U.S. states, namely Arizona, Missouri, Georgia, Maryland, Michigan, New Hampshire, and most recently, Rhode Island.
However, the announcement prompted a positive response in the form of a price increase for Dogecoin, indicating the potential for an upward movement in its value due to the introduction of cryptocurrency payments on the X platform.
Dogecoin’s Future Brightens with X (Twitter) Cryptocurrency Initiative
Could X’s adoption of cryptocurrency payments reignite a bullish trend for Dogecoin? The likelihood of this scenario appears minimal. While the integration of cryptocurrency trading and transactions might contribute to some degree of upward movement for the meme-based currency, its potential is constrained.
Despite the announcement of this development, DOGE experienced a modest increase of less than 10% within the past 24 hours. The cryptocurrency struggles to elicit bullish sentiment, largely due to the overall market conditions not favoring a significant rally.
Elon Musk has consistently tweeted about DOGE over the past year, albeit its positive trajectory with the generated hype usually lasting only for about 24 hours. If Musk’s efforts fail to sustain DOGE’s upward momentum, it seems improbable that any new developments could prompt a notable price surge.
While the news of X’s cryptocurrency trading service development holds promise, the prevailing market sentiment remains bearish. The positive announcement is not gaining the anticipated upward momentum due to the prevailing bearish market trends. Therefore, whether Dogecoin experiences a robust rally post the introduction of X’s crypto payments hinges on the market’s stance.
Nevertheless, expecting Dogecoin to replicate its 2021 surge is unlikely, as the meme currency is no longer captivating new and first-time investors. Instead, it is traded by individuals who frequently buy and sell, which could exert additional pressure on DOGE’s price, causing it to decline after each rally in the broader market indices.
As of the present moment, Dogecoin is trading at $0.065, reflecting a nearly 4% increase in the 24-hour trading period. However, it’s worth noting that DOGE has declined by approximately 92% from its record high of $0.73, reached in May 2021.