Dogecoin Price Spikes 10% As X Payments Receive Licenses
DOGE price spikes on the X Payments news but encounters strong resistance. Can it break it?
Key Takeaways
- Dogecoin surges after X Payments secures new licenses.
- Musk’s support fuels Dogecoin (DOGE) speculation and interest.
- X aims for “everything app,” expanding U.S. presence.
On March 22, Dogecoin experienced a notable surge, increasing over 10%. This came following the news that X Payments, associated with Elon Musk, obtained crucial money transmitter licenses in Illinois, New Mexico, and Oregon. The development signifies a considerable expansion for X Payments in the US and could be a bullish sign for Dogecoin.
The potential for X Payments to incorporate Dogecoin into its payment system has sparked significant interest and speculation. Elon Musk’s apparent support for Dogecoin has prebiously influenced its market value and investor enthusiasm. Earlier this month, Musk hinted at the possibility of X accepting DOGE and is seens as one of the biggest advocates for this cryptocurrency.
X Payments Receives Three Licences
In a discussion with Cathie Wood of Ark Invest, Musk shared an ambitious plan to launch payment features for X by mid-2024. This is in line with Musk’s vision for an “everything app,” akin to China’s WeChat. He wants what is still better known as Twitter to have financial transactions, social media, and multimedia functionality.
X Payments LLC is extending its reach across the United States, with its operational presence now covering 22 states. This move is part of its ambition to achieve widespread national coverage. The acquisition of new licenses on March 20 highlights the company’s meticulous strategy to navigate the complex state-level financial regulations.
Another significant stride for X Payments was registering with the Financial Crimes Enforcement Network (FinCEN) as a money service business (MSB). This is essential for compliance with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations in the US.
Dogecoin (DOGE) Price Analysis
The price of DOGE reached a high of $0.20 on March 5, coming to a 1.618 Fibonacci extension on the logarithmic daily chart. It was most likely the end of its third wave of a five-wave impulse that started on October 13 last year.
A downtrend followed, with the price coming to a low of $0.12 on March 20, but recovered over 20% the next day. We could have seen the end of its corrective phase in wave four, with the increase from March being its next advance to a new higher high.
However, more likely, Dogecoin (DOGE) has one more low to clear before the uptrend continues. It formed a descending triangle with what appears to be an ABCDE correction, leaving its last wave, to develop.
If this happens, DOGE can fall to a low of $0.10. With its significant horizontal support in the vicinity, Dogecoin will, most likely, bounce. On March 22, DOGE spiked to its triangle’s descending resistance at $1.60 and was rejected, confirming the assumption.
But, should we see a higher low followed by a breakout to the upside, it would indicate that DOGE has entered another bullish phase in which it can climb above $0.25.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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