Dogecoin price continues to reward investors amid an Elon Musk-triggered rally. As reported on Friday, the largest meme coin surpassed the forecasted target at $0.1000. If the attention DOGE is getting spills into the new week, investors can acclimatize to Dogecoin price tagging of $1.0000.
What Does Musk Twitter Deal Mean for Dogecoin Price?
The world’s wealthiest man is now at the helm of the microblogging platform Twitter. Elon Musk completed his $44 billion bid on Twitter late Thursday and immediately took over from the ongoing CEO, Parag Agrawal. Two more top executives were shown the door, including the company’s CFO, Ned Segal and the head of legal, Vijaya Gadde.
Musk’s Twitter takeover has taken many turns and twists since he first mentioned it in April. The following months saw the billionaire try to back out of the deal, but Twitter sued him to compel him to allow the deal to sail through.
Meanwhile, Dogecoin price is up 80% over the last seven days amid a rally ignited by the business magnate, who doubles up as the CEO of Tesla – the world’s largest electric vehicle manufacturer.
Musk’s association with Dogecoin has frequently caused a stir, with the price soaring to new levels. Musk’s tweets mentioning Dogecoin have, in the past, acted as a bullish trigger for Dogecoin price.
Now analysts believe that the Dogecoin rally could be sustainable and expect the meme coin to push past its record high at $0.7315 for a maiden run to $1.0000.
Nevertheless, the Dogecoin price must secure higher support, preferably above $0.1000. DOGE exchanges hands at $0.1140 at the time of writing.
DOGE/USD daily chart
Looking at the Moving Average Convergence Divergence (MACD) indicator, Dogecoin price has the potential to obliterate resistance at $0.1400 this weekend, in addition to another vivid buy signal presented when the 12-day Exponential Moving Average (EMA) (in red) flipped above the 26-day EMA.
Dogecoin’s uptrend is also supported by positive trading volume, revealed by the On-Balance-Volume (OBV). According to this indicator, its trading volume has surpassed $11 billion. As long as this momentum behind Dogecoin price holds or even increases – investors can buckle up for a significant upswing eyeing $1.0000.
Key Factors Backing Dogecoin Price Rally
In the past few days, whales have thrown their support behind DOGE, scooping up millions of tokens. According to Dogecoin Whale Alert, one of the biggest wallets transferred approximately 28million DOGE worth around $32 million at the current exchange rate.
Although some large-volume investors purchased DOGE in droves just before its bullish trend reversal, the Dogecoin Whale Alert Twitter feed reveals its uptake has yet to slow. The whales’ buying spree could easily achieve the forecasted move to $0.1400 before the new week look conservative. In other words, Dogecoin price has the potential to close in on $1.0000 this weekend.
Dogecoin’s rally coincides with Dogechain releasing a new roadmap, a layer-2 scaling solution provider for DOGE’s ecosystem. The announcement excited many people who wish to see Dogecoin’s use cases grow. At the same time, Dogechian took the opportunity to launch a voting process that will focus on reducing Dogecoin supply by 80%.
Insight from on-chain data confirmed that investor sentiment had flipped positively, thus backing a sustainable rally. The IOMAP metric from IntoTheBlock directs our attention to the region between $0.1060 and $0.1094, where slightly over 5,000 addresses previously purchased 8.12 billion DOGE.
Dogecoin also faces significantly weakened seller congestion areas that could increase the probability of the price swinging to $1.0000
Dogecoin IOMAP chart
3 Altcoins to Consider as Dogecoin Price Explodes
Although Dogecoin looks promising, investors must take portfolio diversification seriously, especially when new potentially bullish crypto projects are coming up.
All three tokens covered are not associated with big names like Elon Musk, which means they carry a low hype-related risk. Remember, Dogecoin jumped massively due to Musk’s Tweets and mentions in 2021, only to retrace locking up investments.
Meet Dash 2 Trade – An Ethereum-based Crypto Analytics Platform
Dash 2 Trade is a crypto project designed to take your crypto trading to the next level. It will allow traders and investors to create and test trading strategies in real-time while considering the latest news and on-chain data.
D2T is the token powering the Dash 2 Trade network as it focuses on becoming a world-class crypto analytics platform. The goal is to equip users with as much actionable information and trading signals as possible to that they are confident while taking advantage of the opportunities in the market.
The presale for the D2T token is selling fast, with only 38 million tokens left for grabs. Live price data shows that $3.2 million of the expected $5.16 million has been raised. D2T now sells for 0.05 USDT, but this price will go up to $0.0513 in the next stage.
IMPT is a proof-of-stake (PoW) eco-coin promising 50x gains. It is considered the greenest cryptocurrency, ideal for ESG investors. IMPT is sustainable crypto that can save the world – way better than other PoS tokens like SolarCoin and Powerledger.
So far, its presale has raised over $11 million less than a month into the event. The team looks forward to raising $25 million by selling IMPT for $0.023 in stage two of the presale.
Calvaria is a play-to-earn (P2P) video game that aims at removing entry requirements for players. The game stands out for allowing everyone to access it without the need to have any cryptocurrency – not even a wallet.
Players compete in tournaments while utilizing cards representing various characters, each of which has its own set of skills. The player’s objective is to overcome opponents using sophisticated methods and tactics to obtain awards and other upgrades.
The market is currently in a news-driven environment where the prices of cryptocurrencies have been determined by news agenda rather than fundamentals.
Bitfinex analysts have warned crypto investors to be cautious as bitcoin’s (BTC) recovery over the weekend is not a sign that its correction is over; the asset could witness more bloodshed in the near term.
In the latest Bitfinex Alpha report, experts deemed the market’s reaction this week critical, especially as supply alleviated over the weekend could return when traditional markets open.
“No Man’s Land”
Since Saturday, bitcoin has risen almost 10% from $57,600 to $63,000, closing last week in the green. The asset has surged above the 125-day range low of $60,200, which it broke through earlier this month after news of the German government’s massive BTC selling hit the market.
Market sentiment began to improve after reports that wallets linked to the German government were almost empty. However, the positive sentiment may not be sustained for long as the BTC the German authorities moved to trading desks and exchanges are yet to be sold.
While the supply from Germany appears to have been factored into bitcoin’s market price, Bitfinex analysts believe the end of selling pressure depends on how the involved trading desks execute their trades in the coming days.
Although the shift in sentiment underscores the market’s capacity to integrate new information and adjust expectations quickly, analysts think the market’s reaction over the first two trading days of the week cannot be overlooked for two reasons.
First, the low support level in the $60,200 range has now become a potential resistance line. Second, trading patterns over the past three months suggest that weekends are usually favorable for markets, especially on Saturdays when supply pressure seems to subside.
“We are now in no man’s land until we get clear resolution above or below this level,” the analysts said.
A News-Driven Environment
Besides the potential resistance level and three-month weekend trading pattern, the market is currently in a news-driven environment, where the prices of cryptocurrencies have been determined by news agendas rather than fundamentals.
Since selling pressure concerns are not yet completely obsolete due to upcoming Mt Gox creditor distributions, Bitfinex analysts expect such headlines to continue to have some impact on price movements. As such, the analysts urged investors to exercise caution in their trading strategies.
BlackRock’s IBIT led with $117.25 million in inflows on July 15, also being the most traded Bitcoin ETF.
The US spot Bitcoin ETFs recorded a daily net inflow of $301 million on July 15th. This extended their winning streak to seven consecutive days amidst a broader market recovery.
None of the ETFs recorded outflows for the day.
Bitcoin ETFs Rake in $16.11B in Net Inflows Since Jan
According to the data compiled by SoSoValue, BlackRock’s IBIT, the top spot Bitcoin ETF by net asset value, recorded the largest net inflows of the day at $117.25 million. IBIT was also the most actively traded Bitcoin ETF on Monday, with a volume of $1.24 billion. Ark Invest and 21Shares’ ARKB came in close behind with net inflows of $117.19 million.
Fidelity’s FBTC experienced net inflows of $36.15 million on Monday, while Bitwise’s BITB saw $15.24 million in inflows. VanEck’s HODL, Invesco and Galaxy Digital’s BTCO, and Franklin Templeton’s EZBC funds also recorded net inflows. Meanwhile, Grayscale’s GBTC and other ETFs, such as Valkyrie’s BRRR, WisdomTree’s BTCW, and Hashdex’s DEFI, registered no flows for the day.
A total of $2.26 billion was traded on Monday. The trading volume for these ETFs was less than in March when it exceeded $8 billion on some days. Meanwhile, these funds have collectively attracted $16.11 billion in net inflow since their January launch.
What’s Next For Bitcoin?
Earlier this month, bitcoin’s price decline was mainly due to fears of massive selling pressure from Mt. Gox and the German government’s BTC sales.
But the assassination attempt on pro-crypto former US President and presumptive Republican candidate Donald Trump at Saturday’s rally seemed to spark a recovery in the world’s largest digital asset, and experts are bullish on the asset’s price trajectory going forward. Bitcoin surged more than 9% over the past week and was currently trading slightly below $64,000.
Veteran trader Peter Brandt discussed bitcoin’s price outlook, suggesting a potential major rally. He referred to a pattern he terms “Hump->Slump->Bump->Dump->Pump” and highlighted that the July 5 double top attempt was a bear trap, confirmed by the July 13 close. He sees a likely continued upward trend but warned that a close below $56,000 would negate this bullish view.
“Bitcoin $BTC could be unfolding its often-repeated Hump…Slump…Bump…Dump…Pump chart construction. Jul 5 attempt at the double top was a bear trap, confirmed by Jul 13 close. Most likely scenario now is that bears are trapped. Close below $56k negates this interpretation”
PeckShield alert reveals LI.FI’s protocol vulnerability is similar to a March 2022 attack, with the same bug recurring.
The decentralized finance (DeFi) platform LI.FI protocol has suffered an exploit amounting to over $8 million.
Cyvers Alerts reported detecting suspicious transactions within the LI.FI cross-chain transaction aggregator.
LI.FI Issues Warning After $8 Million Exploit
LI.FI confirmed the breach in a statement on July 16 via X: “Please do not interact with any http://LI.FI powered applications for now! We’re investigating a potential exploit.” The team clarified that users who did not set infinite approval are not at risk, emphasizing that only those who manually set infinite approvals seem to be affected.
According to Cyvers Alerts, more than $8 million in user funds have been stolen, with the majority being stablecoins. According to on-chain data, the hacker’s wallet holds 1,715 Ether (ETH) valued at $5.8 million and USDC, USDT, and DAI stablecoins.
Cyvers Alerts advised users to revoke relevant authorizations immediately, noting that the attacker is actively converting USDC and USDT into ETH.
Crypto security firm Decurity provided insights into the exploit, stating that it involves the LI.FI bridge. “The root cause is a possibility of an arbitrary call with user-controlled data via depositToGasZipERC20() in GasZipFacet, which was deployed 5 days ago,” Decurity explained on X.
“In general, the risks behind routers, cross-chain swaps, etc. are about token approvals. Raw native assets like (unwrapped) ETH are safe from these kinds of hacks b/c they don’t have approvals as an option. Most users & wallets also no longer do “infinite approvals” which gives a smart contract total control on removing any amount of their tokens. It’s important to understand which tokens you’re approving to which contracts.
This dashboard looks for all transactions of a user that intersects Lifi. Not all of these transactions indicate risk- but you can see how, broadly, integrations & layers of tech (like how Metamask bridge uses Lifi on BSC) can complicate how users do or don’t put their assets at risk. Revoke Cash is the most well known approval manager app.
But it’s also good security practice to simply rotate your address. New addresses start with 0 approvals, so starting fresh by moving your tokens to a fresh address is another good security practice.” – commented Carlos Mercado, Data Scientist at Flipside Crypto.
Recent Exploit Mirrors March 2022 Attack
Further analysis by PeckShield alert revealed that the vulnerability is similar to a previous attack on LI.FI’s protocol that occurred on March 20, 2022. That incident saw a bad actor exploit LI.FI’s smart contract, specifically the swapping feature, before bridging.
The attacker manipulated the system to call token contracts directly within their contract’s context, making users who had given infinite approval vulnerable. This exploit resulted in the theft of approximately 205 ETH from 29 wallets, affecting tokens such as USDC, MATIC, RPL, GNO, USDT, MVI, AUDIO, AAVE, JRT, and DAI.
“The bug is basically the same. Are we learning anything from the past lesson(s)?” PeckShield Alert said in a July 16 X post.
Following the 2022 incident, LI.FI disabled all swap methods in its smart contract and worked on developing a fix to prevent future vulnerabilities. However, the recurrence of a similar exploit raises concerns about the platform’s security measures and whether adequate steps were taken to address the vulnerabilities identified in the previous breach.
LI.FI is a liquidity aggregation protocol that allows users to trade across various blockchains, venues, and bridges.
