Elon Musk’s company, X (previously known as Twitter), has successfully obtained the necessary licenses to commence cryptocurrency payments, trading, and transactions on its platform. The regulatory authorities have granted X a license for trading operations in seven states within the United States, namely Arizona, Missouri, Georgia, Maryland, Michigan, New Hampshire, and most recently, Rhode Island. This development has had an immediate impact on the market, with Dogecoin experiencing a surge in value, indicating the potential for X’s cryptocurrency payment system to contribute to an upward trajectory in its price.
Could This Latest Update Pave the Way For a New Dogecoin Spike?
The adoption of cryptocurrency payments by X is unlikely to lead to a bullish trend for Dogecoin. While the introduction of cryptocurrency trading and transactions on the platform may initially contribute to an increase in the value of the meme currency, it is important to note that the impact will likely be limited.
Despite the recent announcement, DOGE has experienced a modest surge of less than 10% within the past 24 hours.
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The lack of bullish sentiments towards Dogecoin can be attributed to the overall market conditions, which are currently unfavorable for a rally. Despite Elon Musk’s frequent tweets about DOGE over the past year, the cryptocurrency has only experienced short-lived periods of positive price movement, typically lasting no more than 24 hours. This suggests that Musk’s influence alone is insufficient to sustain a prolonged increase in Dogecoin’s value.
Although the development of a cryptocurrency trading service by X is considered a positive development, it is important to note that the current market sentiment remains bearish. As a result, the optimistic news surrounding X’s cryptocurrency payments may not be generating the expected bullish momentum, as it is being overshadowed by the prevailing bearish conditions. Consequently, whether Dogecoin will witness a significant price spike following the release of X’s crypto payments will depend on the overall state of the markets.
However, the possibility of Dogecoin experiencing a rally similar to that of 2021 can be discounted due to waning interest from new and novice investors. The meme currency is currently attracting traders who engage in repetitive buying and selling patterns, leading to increased selling pressure whenever DOGE experiences a surge in value. Consequently, this repetitive behavior contributes to a subsequent decline in the price of Dogecoin after each significant spike in market indices.
As of the latest update, Dogecoin is currently being traded at $0.065, reflecting an increase of approximately 4.15% within the past 24 hours. However, it is important to note that DOGE has experienced a significant decline of nearly 91.1% from its all-time high of $0.73, which was attained in May 2021.
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