Dogecoin experienced a notable rebound, surging 5% to reach $0.20 on Sunday, October 19. This uptick followed the announcement from Elon Musk’s platform, X, regarding the launch of a new marketplace for unused usernames, which has rekindled speculation about the potential integration of Dogecoin for payments within the platform.
Prior to this bounce, Dogecoin had faced two consecutive weeks of losses, closing the previous week at $0.18. This marked a significant 35% decline from a recent high of $0.27 recorded on October 6. The cryptocurrency’s price movements have displayed a heightened sensitivity to broader market sentiments and macroeconomic pressures, including considerable liquidations affecting overall market performance recently.
The introduction of the XHandles marketplace by X promises to allow users to search for, request, and purchase handles that are currently inactive. This initiative has led to renewed speculation surrounding the incorporation of Dogecoin as a payment option on Musk’s platform. Prospective users can join a waitlist via the newly launched official website for the marketplace.
Musk’s strong ties with Dogecoin have been well documented, further emphasized when he was appointed to lead the Department of Government Agency, overseeing financial regulations regarding DOGE. Despite leaving this role in May, he continues to maintain a presence within the Dogecoin community.
In the derivatives markets, short traders appear to maintain a dominant influence, even amidst the weekend’s price recovery. Data from Coinglass indicates that Dogecoin’s open interest has surged by 10.62% to reach approximately $1.9 billion. The trading volume has also increased by 6.19%, totaling around $4.6 billion. Despite the recent recovery, short traders accounted for 70% of the approximately $4.7 million in liquidations over the last 24 hours, indicating ongoing caution among traders regarding Dogecoin’s long-term trajectory.
Currently, Dogecoin’s long-to-short ratio is positioned at 0.99, suggesting that while there are bullish bets being placed, bearish sentiment still prevails. Speculation surrounding potential integrations between Dogecoin and the XHandles marketplace is significant, particularly in light of X’s previous moves to secure payment transmitter licenses across multiple U.S. states.
Looking ahead, analysts are watching closely to see if bulls can defend the critical $0.18 support level. Following a correction of 34.6% from its recent peak, Dogecoin has managed an 11.9% recovery over the weekend. Currently, the price is hovering near the mid-Bollinger Band, indicating a return to neutral territory after the repercussions of approximately $1.2 billion in liquidations in the crypto market last Friday.
The Relative Strength Index (RSI) stands at 40.77, with the average RSI line at 42.19 signaling mild upward momentum. However, both readings remain below the neutral threshold of 50, suggesting that Dogecoin is still in a recovery phase rather than experiencing a confirmed bullish trend. Trading volume has stabilized at around 154.3 million DOGE, indicating steady demand amidst earlier market capitulations.
A decisive break above the $0.22 resistance level could bolster bullish momentum, potentially propelling prices toward the target range of $0.26 to $0.28. Conversely, failing to uphold the $0.18 support risks exposing Dogecoin to lower price targets near $0.16. If momentum continues to build and credible integration of Dogecoin into Musk’s X marketplace materializes, it may pave the way for a more sustained rally toward the psychological milestone of $1.
