DOGE Finds Support After an Elon Musk $41bn Bid for Twitter

Key Insights:

• On Thursday, Elon Musk hit Twitter with a $41bn cash offer.
• DOGE had hit choppy waters this month as the markets responded to Musk’s shareholding news.
• This morning, DOGE responded favorably to the news, despite the broader crypto market hitting reverse.

It has been a choppy month for DOGE, buffeted by Elon Musk and Twitter chatter.

Last week, DOGE found much love on news of Elon Musk disclosing a 9.2% Twitter stake and the talk of a seat on the board.

On Monday, love quickly turned to hate, however, with Elon Mush reportedly refusing a seat on the Twitter board. Declining the seat would have removed the chance of a DOGE payment option on Twitter, something Musk had previously suggested on Twitter.

DOGE Finds Support as Elon Musk Delivers Twitter Takeover Bid

On Thursday, news hit the wires of Musk offering a whopping $41bn cash offer for Twitter. According to Reuters, the $41bn offer represents an impressive 38% premium on the April 01 close, the trading day before the public disclosure of Musk’s 9.2% stake.

Following some initial suggestions on how to improve the organization, the Tesla boss may have stood back to hatch an alternative strategy, a buyout to take the company private and reintroduce the ethos of free speech.

According to the Reuters report, Musk sent a letter to Twitter Chairman Bret Taylor stating,

“Since making my investment, I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.”

In March, Musk hit the global financial markets with a survey on Twitter’s free speech policy. 70.4% voted no to Twitter viewing free speech as essential to a functioning democracy.

Following the survey, suggestions of a Twitter buyout and a logo change to DOGE intertwined Musk, DOGE, and Twitter.

DOGE Price Action

At the time of writing, DOGE was up 1.64% to $0.1422. Market reaction to the Elon Musk Twitter bid saw DOGE jump to a day high of $0.1476 before easing back.

Bearish sentiment across the broader market weighed, with the Second Major Resistance Level at $0.1470 pegging DOGE back.

Technical Indicators

DOGE will need to avoid the day’s $0.1399 pivot to make another run on the First Major Resistance Level at $0.1434. DOGE would need the broader crypto market to support a return to $0.1430.

An extended rally would test the Second Major Resistance Level at $0.1470 and resistance at $0.15 for a second time. The Third Major Resistance Level sits at $0.1541.

A fall through the pivot would test the First Major Support Level at $0.1363. Barring an extended sell-off, DOGE should steer clear of sub-$0.1350 levels. The Second Major Support Level sits at $0.1328.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bullish signal. DOGE sits on the 100-day EMA at $0.1422. This morning, 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA flattened on the 200-day EMA.

A move back through the 50-day EMA would support another run at $0.16.