Investors are raising concerns about Elon Musk’s acquisition of Twitter. The Dogecoin’s price spiked to an all-time high of $0.1381 after a few weeks. It now trades at $0.1381 and has a market capitalization of approximately $18 billion.
Twitter and SpaceX CEO Elon Mussel agreed Monday to acquire Tesla’s Twitter for $54 per share. This would increase the company’s value to more than $44 million.
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Many people thought that Musk buying Twitter would help boost Dogecoin’s momentum. It seemed like they had been right for 24 hours until all the interest and excitement quickly faded.
Traders lost $281 million worth of “longs” to liquidation in the past 24 hours. In total, $350 million was liquidated. This was the third largest liquidation amount in April. About one third ($128million) of that sum came from bitcoin-tracked options. 92 million came from ether options. Futures tracking dogecoin lost $24 million, similar to Tuesday’s loss.
Doubts On Musk’s Twitter Acquisition
Twitter shareholder are concerned about the possibility of the purchase not going through. The price of a share at Twitter is currently $49, which is lower than what was offered ($54). In addition, the company currently has a market value of about $37 billion – $6 billion less than when this deal first began.
Tesla’s acquisition of Twitter could have unexpected consequences, especially for Elon Musk. Many people believe that Musk will pay a $1 million breakup fee to exit the deal.
China is Tesla’s biggest market and it has its own large manufacturing plant. So there’s a chance that if Musk tweets something unfavorable about China, the country can punish him. China is strict about free speech. Anyone who violates these laws could face severe penalties.
Dogecoin’s price crashed due to fears that Musk won’t buy Twitter. However, it’s believed most investors think if this acquisition closes, it’ll be good news for DOGE because he vows to add them as a payment option.
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Dogecoin Prediction
This graph illustrates that DOGE’s price has steadily fallen since its high point of $0.1725. This is known as a double top pattern.
A double-top usually indicates that the price of DOGE coin will drop. DOGE is close to both the 50-day and 25-day moving medians. The Stochastic Oscillator also moved past the oversold mark. This means the price is likely to continue falling. 0.1100 is the next support level. Bearish views will not be validated if prices rise above $0.15
Featured image taken from Pixabay. Chart from Tradingview.com