What Happened: Elon Musk moved the market once again, as he took to Twitter to declare his support for meme-based cryptocurrency DOGE DOGE/USD.
Tesla Inc TSLA CEO shared a picture of a Doge’s mascot, a Shiba Inu, landing on the moon.
Literally pic.twitter.com/XBAUqiVsPH— Elon Musk (@elonmusk) February 24, 2021
The price of DOGE surged sharply after his tweet, sending the cryptocurrency’s supporters into a flutter.
The cryptocurrency was up 10% since Musk tweeted, climbing from $0.05261 to $0.0583 at press time.
Why It Matters: Musk’s tweet was a reference to a popular expression in the cryptocurrency market, “to the moon.”
This term is often used by market proponents to describe a cryptocurrency with a strong upward market trend or a strong belief that it will soon rise significantly in price.
Musk’s support of the cryptocurrency has been evident for all his 47.8 million Twitter followers of late, as his constant tweets about DOGE have been a recurring trend over the past month.
Earlier this week, he tweeted “Dojo for Doge,” seemingly pitching for the cryptocurrency to be powered by a supercomputer, and earlier this month, he encouraged large Doge holders to sell their holdings, citing “too much concentration” creating a barrier to its growth.
If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue imo.— Elon Musk (@elonmusk) February 14, 2021
The Shiba Inu-themed digital coin rose considerably each time Musk tweeted about it, effectively making Musk’s tweets act as a trading signal to DOGE holders.
Image: Courtesy of Elon Musk's Twitter
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