Dogecoin price risks 40% correction despite Elon Musk-Twitter euphoria
Elon Musk buying Twitter for $44 billion boosts Dogecoin by 25% in the last 24 hours, but selloff risks persist. Dogecoin (DOGE) prices flipped higher in the last 24 hours after its most celebrated backer Elon Musk purchased Twitter for $44 billion. At its best, Dogecoin had climbed to $0.17 on April 25, albeit still down 77% from its record high in May 2021.
Twitter's native currency: Dogecoin?
DOGE's price rose by nearly 25% to $0.15 on a 24-hour adjusted timeframe, confirming that traders considered Musk's acquisition of Twitter a bullish event for Dogecoin. The reason: Musk's long-time support for DOGE, including his recent advice to the Twitter board that they start accepting the meme-crypto for Twitter Blue, their first-ever subscription service.
The comments appeared a year after Twitter revealed that it plans to double its revenues to $7.5 billion by the end of 2023, raising hopes Musk's 100% ownership of the company would have it facilitate its future sales through an additional DOGE payment option.
In January, Musk's flagship company Tesla Motors started accepting Dogecoin, and only DOGE, for some of its merchandise.
DOGE price correction risks
Nevertheless, Dogecoin faces interim selloff risks following its impressive gains in the past 24 hours. DOGE's price started correcting lower after re-testing a multi-month downward sloping trendline as resistance.
Interestingly, the line constitutes a descending channel pattern, which raised the possibility of DOGE extending its pullback move by another 35%-40% by the end of Q2, as illustrated in the chart below.
The selloff risks toward the channel's lower trendline also remain elevated due to the 200-day exponential moving average (200-day EMA) wave near $0.16, which has been capping Dogecoin's upside attempts since November 2021. Conversely, a strong upside continuation above the channel's upper trendline and the 200-day EMA would position DOGE's price for test of $0.20 in Q2. This key level also coincides with the 0.382 Fib line of the Fibonacci retracement graph, drawn from the $0.35-swing high to the $0.10-swing low.
Top Cryptocurrencies with Price Predictions
| # | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | 7d price change | |
| 1 |  BTC |
Bitcoin predictions | 63.6% | 80 | $30 508.12 | 1.26% | -1.89% | $580 960 193 914 |  |
|
|---|---|---|---|---|---|---|---|---|---|---|
| 2 |  ETH |
Ethereum predictions | 61.2% | 79 | $2 093.04 | 2.32% | -11.39% | $252 881 782 711 |  |
|
| 3 |  USDT |
Tether predictions | 93.2% | 1 | $0.998966 | 0.01% | -0.09% | $74 132 298 378 |  |
|
| 4 |  USDC |
USD Coin predictions | 96% | 1 | $1.000154 | -0.02% | 0.03% | $52 257 397 746 |  |
|
| 5 |  BNB |
Binance Coin predictions | 62.8% | 79 | $306.44 | 1.60% | -4.39% | $50 035 144 123 |  |
|
| 6 |  XRP |
XRP predictions | 63.6% | 70 | $0.439088 | 2.06% | -15.23% | $21 226 851 531 |  |
|
| 7 |  ADA |
Cardano predictions | 64% | 70 | $0.576828 | 2.14% | -8.94% | $19 508 461 980 |  |
|
| 8 |  SOL |
Solana predictions | 62% | 80 | $57.33 | 4.48% | -15.31% | $19 341 508 411 |  |
|
| 9 |  BUSD |
Binance USD predictions | 92.8% | 1 | $1.002166 | 0.04% | 0.04% | $18 233 995 659 |  |
|
| 10 |  DOGE |
Dogecoin predictions | 64.8% | 80 | $0.090315 | 1.22% | -17.60% | $11 982 202 523 |  |
|
| 11 |  DOT |
Polkadot predictions | 66% | 77 | $11.07 | 1.94% | -3.93% | $10 927 928 134 |  |
|
| 12 |  AVAX |
Avalanche predictions | 60% | 78 | $34.86 | 4.21% | -23.49% | $9 380 362 142 |  |
|
| 13 |  WBTC |
Wrapped Bitcoin predictions | 60% | 80 | $30 511.34 | 1.34% | -2.03% | $8 645 506 751 |  |
|
| 14 |  TRX |
TRON predictions | 69.6% | 60 | $0.072411 | 3.63% | -6.41% | $7 071 146 113 |  |
|
| 15 |  SHIB |
SHIBA INU predictions | 62.8% | 78 | $0.000013 | 2.45% | -24.21% | $6 898 547 303 |  |
