Elon Musk first announced the agreement in April when he suggested purchasing Twitter for $54.20 per share. Musk demanded that the case against them be dropped in the letter it received. Following the announcement of the revival of the acquisition, Dogecoin experienced a significant increase of 7.3%.
A Quick Refresher
One of the recent deals that garnered the most attention is Elon Musk's plan to purchase the social media behemoth Twitter. The CEO of SpaceX looked eager to modify the platform to support free expression, but only a few weeks after first discussing it did he announce his withdrawal. The price of Dogecoin(1) has increased due to recent rumors regarding the transaction.
Any updates ?
In a letter sent to Twitter on Monday, Musk stated that he intends to close the transaction he initiated back in April 2022. Twitter has reportedly forced the development after it sued Musk for backing out of the deal in July. The Delaware Chancery Court, where the suit was filed, was set to hold the trials from October 17. However, Twitter held the option of retaining jurisdiction until the deal closed, which is what Elon Musk will be going ahead with.
As the price of Twitter's stock revived to $52 (2)following the news, the terms of the agreement did not change. The deal is still $54.20 per share, valuing Twitter at $44 billion. But it wasn't just Twitter's stock price that noted a sudden rise. Musk's pet cryptocurrency, Dogecoin, was also quickly rising in response to the positive development.
How did this affect Dogecoin?
DOGE has increased 7.3% over the last couple of hours to trade at $0.0647. The well-known impact of Musk on the meme currency has again benefited investors.DOGE retested the 50-day and 100-day Simple Moving Averages with the aid of the inclination, but they were not converted into support. (3)
The 23.6% Fibonacci Retracement of $0.1729 to $0.0491 serves as the nearest key barrier for DOGE and is located at $0.0783. The meme coin will necessitate greater buying pressure for DOGE to restore it as support. The buying pressure is currently at a 2-month high, as indicated by the Relative Strength Index , but it is insufficient to raise DOGE to $0.0783. The fourth quarter has, however, started quite well, which may help DOGE's climb moving forward.