Dogecoin price bounces 13% as Elon Musk’s X teases P2P payments $DOGE #EloneMusk

Dogecoin briefly touched $0.09 on Jan. 12, rising 13% since Elon Musk's X announced plans for a P2P payment platform earlier in the week. Musk's social media giant outlined 2024 plans, including P2P payments, triggering a positive DOGE price reaction due to their documented affinity.

800 million Dogecoin sell orders could truncate price rally.

Despite a 13% rally, on-chain data suggests the upswing could be short-lived. The retracement below $0.084 on Jan 12 indicates a prevailing bearish sentiment, evident in the order books where sell orders (798 million DOGE) outweigh buy orders (752.4 million DOGE).

Losing the $0.07 support could catalyze major losses.

The substantial oversupply suggests potential downward price pressure, with the market dynamics signaling an imminent DOGE price correction. To validate this, bears must breach the initial support buy-wall around $0.07.

IntoTheBlock's GIOM data highlights a large cluster of DOGE holders (46.9 billion DOGE) at an average price of $0.072. A drop below this support level could induce panic and larger losses. On the contrary, bullish traders could defy this outlook by pushing DOGE to $0.10, but the $0.095 resistance poses a significant obstacle. Monitoring the $0.07 support and $0.10 resistance is crucial for assessing Dogecoin's price trajectory.