A popular cryptocurrency analyst has suggested that a “stable and stiff support floor” has been found for the price of the meme-inspired cryptocurrency Dogecoin ($DOGE) after a large number of addresses on the network bought the cryptocurrency at a specific level.
According to analyst Ali Martinez, who shared data from on-chain crypto analytics firm IntoTheBlock with his over 10,000 followers on the microblogging platform Twitter, more than 350,000 Dogecoin addresses purchased nearly 64 billion %ODGe at an average price of $0.092, which makes it a “stable and stiff support floor.”
A support area, it’s worth noting, is one where demand is greater than the supply, which often means that prices do not fall below that area unless there is a sudden excess of supply amid a sell-off. Support levels are formed as lower prices make assets more attractive for those holding onto cash.
The price of the meme-inspired cryptocurrency recently surged after Tesla and Space X CEO Elon Musk completed his acquisition of Twitter. Musk is a well-known $DOGE supporter that has hinted at using the meme-inspired cryptocurrency on the platform for some of its features. Tesla, for example, accepts $DOGE payments.
Notably, leading cryptocurrency exchange Binance, which invested $500 million to support Musk’s takeover, has recently launched a ‘Bluebird Index’, which is a cryptocurrency index that tracks the performance of its own native token, $BNB, as well as that of Dogecoin ($DOGE) and a little-known cryptocurrency called Mask Network ($MARK). The name and constituents of the index drew attention on social media, with several users claiming Binance is hinting at the coins that will be a part of a future Twitter integration into Web3.
During a press conference at the 2022 Web Summit in Lisbon, Binance’s CEO detailed that the firm is a “minority investor” that wants to be “as supportive as possible” with Twitter. CZ added that in talks with Musk, he mentioned using Dogecoin on the microblogging platform.
As CryptoGlobe reported, search interest for DOGE exploded ahead of a 10,000% price rally last year, with influencers associated with the WallStreetBets subreddit calling for the meme-inspired to cryptocurrency to surge to $1 being part of the reason for the search explosion, along with jokes made by Tesla CEO Elon Musk around the cryptocurrency. $DOGE’s price has since plunged to now change hands at $0.13.
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