Billionaire Elon Musk is inching further toward his eventual takeover of Twitter and Dogecoin (DOGE) whales are positioning in preparation for the takeover. Musk’s deal to acquire the social media platform has been one fraught with roadblocks along the way, but the two parties have now reached an agreement to facilitate the purchase. Now, the Dogecoin community is anticipating the finalization by Dogecoin’s biggest supporter.
Following a report from Bloomberg, it is expected that Elon Musk would be taking ownership of Twitter this week. The news definitely triggered a reaction from the Dogecoin community, leading to a rise in DOGE trading volumes. However, the most interesting activities are those of Dogecoin whales who have been moving around large amounts of tokens.
Data from the crypto whale tracking platform Whale Alert showed that a whale had moved 107.7 million DOGE from an unknown wallet to the Binance crypto exchange. At the time of the transaction, the stash was worth approximately $7.3 million.
This whale was not the only one as another would follow soon after. This time around, the whale moved 300 million DOGE from one unknown wallet to another. The value of the tokens was $21.6 million at the time of the transaction.
Dogecoin transactions valued at $100,000 and above also spiked during this time. Santiment notes that there were a total of 462 large DOGE transactions at this time and the trading volume for the meme coin had jumped to 1.18 billion DOGE. The question now remains why.
DOGE trading volume surge ahead of Twitter deal completion | Source: Santiment
Rumors in the space are that Musk will likely complete his Twitter deal by Friday. In the past, the billionaire had said that if he were to take ownership of Twitter, he would add an option to tip with DOGE. Now, given the reach of Twitter, it would put the meme coin in front of over 200 million users worldwide. This newfound and widespread utility is expected to trigger a rally in the price of Dogecoin.
Musk’s visit to the Twitter headquarters on Wednesday gives a small glimpse of the effect the deal would have on Dogecoin. After the SpaceX CEO posted a video of his visiting the Twitter HQ, the price of DOGE rallied more than 20% to reach a new 3-month high above $0.08. Given this, the price of the meme coin is expected to rally above $0.1 upon completion of the deal.
It could present a selling opportunity for investors looking to make some profit from their investment. So a downward correction can be expected after such a price surge.
Dogecoin continues to trade in the green at the time of this writing. At a current price of $0.078, the digital asset is up 18.81% in the last 24 hours and 30.48% in the last 7 days.
DOGE recovers to $0.07 | Source: DOGEUSD on TradingView.com Featured image from TechStory, chart from TradingView.com
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