• Dogecoin (DOGE) price rose nearly 33% after Elon Musk’s tweet on April 3, reaching its highest level since December 2022.
• This rally came after the news of Musk’s lawyers seeking to end a $258 billion lawsuit against him for allegedly pumping Dogecoin prices.
• DOGE eyes a short-term pullback as it tests a strong selling area as resistance and its daily relative strength index (RSI) enters the overbought zone.
Dogecoin Price Hits Four-Month High
Dogecoin (DOGE) price hits a four-month high after rallying 30% in a day, with Elon Musk and Twitter playing a central role in the DOGE craze once again.
Musk Pumps Dogecoin By Over 30%
In what appears to be an April Fool’s joke, Musk-owned Twitter changed its official blue bird logo to mimic Dogecoin’s symbol — a Shiba Inu dog featured in viral memes. Later, Musk tweeted a meme recognizing the change which sparked off speculation among investors regarding his influence on the coin market.
Previous Influence On Dogecoin Market
Musk has had some influence on the Dogecoin market with his cryptic tweets and calls himself “Dogefather”. He has also discussed the prospect of adding DOGE payment option for Twitter subscription services and both Tesla and SpaceX accept DOGE for their merchandise products.
What Is Next For DOGE Price?
From a technical perspective, Dogecoin eyes a short-term pullback after testing a strong selling area as resistance, shown below. Also, DOGE’s daily relative strength index (RSI) has entered its overbought zone which boosts its correction prospects in days to come.
The current run up of Dogecoins comes shortly after news that Elon Musks lawyers are seeking to end a $258 billion lawsuit against him for allegedly manipulating prices using his social media presence causing it to rally 36000%. A decisiv pullback could have it drop towards $0.089 as next downside target in April down 10% from current prices.