Dogecoin price continues to lead among other crypto majors, bringing its weekly accumulated gains to 30%. The largest meme coin spiked to $0.0848 on Thursday but retraced to close the day at $0.0770.
As reported, Dogecoin price’s potential to hit $1 is becoming apparent every passing day, especially with Elon Musk taking the reins as the CEO of Twitter. The billionaire founder and CEO of Tesla – the world’s largest electric vehicle manufacturer, confirmed the acquisition of Twitter on Friday.
Elon Musk Becomes Twitter CEO – What Does This Mean for Dogecoin price?
Elon Musk has taken over as the new CEO at Twitter after firing the ongoing CEO, Parag Aggarwal. A series of changes are expected at the social media company, with more layoffs, especially among its top executives. Two other people were shown the door, including Twitter CFO Ned Segal and the firm’s head of legal, Vijaya Gadde.
Musk has been a major Dogecoin enthusiast to the extent of calling himself the “Dogefather.” His statements about Dogecoin have often impacted its price. As the billionaire finalized his deal on the microblogging platform, Dogecoin price climbed from $0.0628 to a weekly high of $0.0848.
With Elon Musk at the helm of Twitter, Dogecoin could secure its position as the new social media meme coin. The largest meme coin use cases have continued to grow over the last two years, bolstered by its association with Musk.
Already over 2,000 global businesses accept Dogecoin as payment, according to the crypto media platform Cryptomode. Musk’s two leading companies, Tesla and SpaceX, currently accept payments in DOGE.
DOGE will likely be accepted as the preferred token for Twitter-based transactions. Such backing will benefit Dogecoin as it tries to recoup the ground to its historical high of $0.7315. Dogecoin price now exchanges hands at $0.0819, 89.1% below the record high.
Why Dogecoin Price rally May Be Unstoppable
Dogecoin price took a brief hiatus at $0.0800 after jumping from its breakout point at $0.0628. The 200-day SMA (Simple Moving Average) marked the seller congestion at that level; however, it now functions as the token’s immediate support.
Backing the uptrend are different fundamental, micro and technical factors. From a technical perspective, Dogecoin sits on top of robust support that could prevent a trend reversal if investors pull the rug and lock in gains.
A break above the resistance highlighted by the upper range limit (in gray) could begin a larger swing to $0.1435. This breakout target represents the distance between the lower and upper range limits – extrapolated above the breakout point.
DOGE/USD daily chart | Tradingview
The OBV (On Balance Volume) indicator reinforces the bulls’ influence on the price, especially with a spike in Dogecoin’s trading volume. In other words, DOGE is seeing an influx of positive volume which will keep the uptrend intact.
Fundamentals Guard Dogecoin Price Recovery
Trend reversals are usually expected after big movements in price, like in the case of Dogecoin’s move above $0.0800. However, the In/Out of the Money Around Price (IOMAP) model by IntoTheBlock affirms that Dogecoin price’s path with the least resistance is to the upside.
The chart below reveals robust support between $0.0772 and $0.0792. Approximately 27,000 addresses previously bought 5.89 billion DOGE in the range. If overhead pressure sends Dogecoin price spiraling, holders within this range will put up a fight in a bid to protect their gains. Hence, the likelihood of Dogecoin price tagging a higher level at $0.1000 will bring its all-time high at $0.7315 and the much desired $1.0000 in sight.
Dogecoin IOMAP model | IntoTheBlock
Large volume investors, referred to as whales, are also putting their feet down to back Dogecoin’s relief rally. In the last week, addresses with 1 million to 10 million DOGE have jumped to 3,720 from 3,707. This was a minor move in a buying spree that appears to have kicked off around mid-August. If the demand for the leading meme token continues to surge, investors should acclimatize to an extended rally as the year ends.
Dogecoin Supply Distribution
This on-chain analysis will only be complete if investor sentiment, which has been on an upward roll this week and Dogecoin’s ballooning social volume are mentioned. Looking at the chart below, the curve (in red) represents positive sentiment, while social volume is blue.
Investors reacted positively to the news that Elon Musk was finally taking over Twitter. While positive chatter hit 3,012 on Thursday, its total social volume spiked to 4,658. Dogecoin price also jumped in tandem with the investor sentiment, attracting market participants to capitalize on the move.
Dogecoin Social Volume/Positive Sentiment
Meanwhile, Dogecoin price will, for the time being, come under the microscope, with traders looking for long positions above $0.0850. A successful breakout would be necessary for Dogecoin price bullish outlook to $0.1435, $0.7315 and $1.0000, respectively.
On the other hand, traders should look for possible trend reversals, frequently occurring after an asset moves significantly in either direction – up or down. As mentioned, investors could start profiteering if a breakout to $0.1000 does not materialize. Therefore, scanning for a potential bearish correction could prove profitable, especially below the 200-day SMA.
Dash 2 Trade – A New Crypto Presale Worth Considering
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.
The team has employed cutting-edge technology to tap key data points that ensure traders develop a holistic view and approach to the market.
D2T is the token powering the Dash 2 Trade network as it works 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. So far, approximately 43 million D2T tokens worth around $2.9 million have been sold. D2T sells for 0.05 USDT, but this price will go up to $0.0513 in the next stage.
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.
