3 reasons why Dogecoin price can now gain 50% by September

At least three market catalysts show that Dogecoin (DOGE) could rise by at least 50% by the end of Q3 2022.

Falling wedge breakout in play

Dogecoin has been painting a “falling wedge” pattern on its longer time frame charts since May 2021, suggesting bullish reversal potential in the coming months.

Falling Wedges appear when the price tends to fall within a range defined by two descending and converging trend lines. Its occurrence coincides with declining trading volumes, suggesting that trading activity slowed due to narrowing of the price range.

A breakout of the wedge to the upside, coupled with an increase in trading volumes, suggests that the asset is breaking out. As a technical analysis rule, a falling wedge breakout can push the price up as much as the maximum distance between the upper and lower trend line of the structure.

Applying classical theory to Dogecoin suggests that it would go up to $0.40 if the breakout occurs near the $0.14 level, or about 190% above the current price.

In a worst case scenario, the breakout of the falling wedge could send the price of DOGE up a little over 50% to $0.21, given that its breakout point gets close to the apex around $0, 75.

DOGE/USD weekly price chart with “falling wedge” setup. Source: TradingView

Elon Musk’s takeover of Twitter

Earlier this week, Twitter announced that it had accepted Elon Musk’s offer to buy his social media platform for $4 billion. The Dogecoin price reacted bullishly to the possibility of Musk integrating DOGE as one of the official means of payment for Twitter subscription services, according to his recent recommendations to the company’s board.

DOGE/USD daily price chart with Musk’s tweet. Source: TradingView

Noelle Acheson, head of market research at Genesis Global Trading, noted that DOGE’s price rally is due to “a lot of speculation” given that Musk has yet to confirm whether or not he would add a Dogecoin payment option on Twitter.

“But the possibility, even if remote, is enough to get merchants excited about the potential gain in DOGE adoption,” he told Bloomberg.

DOGE investors are getting excited

Musk’s takeover announcement on Twitter on April 25 and its subsequent positive impact on Dogecoin prices, which surged nearly 20% on the same day, coincided with a spike in retail and institutional interest.

For example, internet queries for the keyword “buy Dogecoin” soared 392% on April 25, according to Google Trends. Meanwhile, DOGE on-chain transaction volume worth more than $100,000 hit $2.59 billion on the same day.

“This is the highest volume since March 24 and represented 94% of the total volume,” data analytics platform IntoTheBlock noted.

Dogecoin on-chain transaction volume. Source: IntoTheBlock

CryptoWallet.com, a cryptocurrency card service, also confirmed the same in an email statement to Cointelegraph, noting that “online interest in buying Dogecoin spiked to almost four times the average volume in one day due to Musk acquired full ownership of Twitter.”

Related: Dogecoin Jesus? Roger Ver reappears on Twitter, endorses DOGE on BTC

The price of DOGE fell more than 12% on April 26. However, the drop accompanied lower volumes than the previous day, suggesting weaker profit-taking sentiment.

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