Why is Dogecoin price up today?

Dogecoin (DOGE) price is up today as traders speculate about its addition to Twitter’s rebranded social media platform dubbed “X.”

DOGE price hits May 2023 high

On July 25, DOGE price climbed nearly 5.5% to $0.078, its highest level in two months.

The token’s intraday gains came as a part of a weekly rally that started two days ago when Elon Musk rebranded Twitter to X while adding the DOGE symbol to his bio. 

Since then, Dogecoin has jumped over 11%, akin to its previous bullish reactions to Musk’s pro-dogecoin statements.

DOGE/USD daily price chart. Source: TradingView

On July 25, Musk revealed X as an “everything app,” with a special focus on financial services.

That has prompted some analysts to believe that the billionaire entrepreneur would add a DOGE payment option on X — more than a year after flirting with the idea during a social media interaction.

“Just watch Elon Musk troll everyone by making DOGE the first crypto to be used on the X platform,” David Gokhshtein, the founder of Gokhshtein Media, asserted.

DOGE bears liquidated

The Dogecoin price rally has triggered more than $6 million worth of short liquidations since July 24, comprising around 60% of the total positions liquidated.

Dogecoin total liquidations chart. Source: TradingView

Short sellers exit their positions with buy orders, thus pushing the prices higher. That further shows why the Dogecoin price rose on July 25. Nonetheless, DOGE’s open interest-weighted funding rate has slipped into the negative territory, showing bears are paying bulls to keep their positions open.

That shows most derivative traders have turned bearish toward the Dogecoin market despite its ongoing price rally.

DOGE OI-weighted funding rate. Source: Coinglass

Dogecoin price analysis 2023

From a technical standpoint, the DOGE price has entered the breakout stage of its prevailing bump-and-run-reversal bottom pattern, with a price target of around $0.88, up around 15%, by September 2023. 

DOGE/USD daily price chart. Source: TradingView

Conversely, a bearish scenario involves Dogecoin entering a short-term correction as its daily relative strength index nears 70, an overbought area, and its price tests $0.078 as resistance. The $0.078 level was instrumental in capping DOGE’s upside attempts in March 2023.

Related: Dogecoin soared 23,000% in 2021 — Is history starting to repeat for DOGE price?

In this case, DOGE price’s immediate downside target appears to be around $0.073 for July, coinciding with its 0.382 Fib line of the Fibonacci retracement graph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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