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Is Elon Musk's Influence On Dogecoin Price Waning?

March 23, 2021 5:48 am
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Is Elon Musk's Influence On Dogecoin Price Waning?

“One word: DOGE,” tweeted Elon Musk, the CEO of Tesla Inc (NASDAQ:TSLA) on Dec. 20 and sent the joke cryptocurrency soaring as high as 20.5% in a single day. The entrepreneur’s frequent tweets are associated with price movements in Dogecoin (DOGE), but are the utterances of Musk still as potent? We take a look.

Dogs Rock: Benzinga sifted through some of Musk’s tweets on DOGE or associated innuendo beginning early last year leading up to the present and tracked the associated price movements. In early March of 2020, Musk tweeted: 

He also said in the same string “They have the best coin.” DOGE opened at $0.0023 that day on Mar 3. 2020, and reached a high of $0.0025. A decent spike of 8.69%.

Dogecoin Mode: Next month, Musk said on Twitter “Dogecoin Mode” in response to a Twitter follower’s comment on the Cybertruck. On Apr. 25, DOGE opened at $0.0021 and rose to $0.0024, an intraday gain of 14.28%.

Doge Seller: On Jul.18, Musk told one of his 49.4 million followers that he only sells DOGE. 

DOGE moved 8.57% higher that day touching an intra-day high of $0.0038 after opening at $0.0035. 

Super Doge: When a Twitter user brought up Tesla’s Dojo supercomputer, Musk simply tweeted, “Dojo/Doge.” This was on Nov. 18. That day DOGE touched an intraday high of $0.0030 after opening at $0.0029. A gain of 3.44%.

Doge Greetings: It was at the end of 2020 that DOGE rallied over 20% after Musk posted his “One word” tweet. On Christmas, he included a Dogecoin symbol in his Christmas greetings emblazoned on a pair of red satin short shorts. 

The Shiba-Inu-themed cryptocurrency returned 60% in 2020. However, more was to come. 

Dogue: On Jan. 28, Musk posted the cover of a makebelieve magazine titled “Dogue.” Specifically the magazine’s “Goodest Issue.”

That day DOGE opened at $0.0075 and touched a high of $0.0138. The spike was a phenomenal 84%. The gains over a period of a day were even more spectacular as the joke cryptocurrency shot up 420%. The next day Musk changed his Twitter Bio to #bitcoin, a reference to the apex cryptocurrency.

To The Moon: On Feb. 7, Musk tweeted “Who let the Doge out,” a play on the Baha Men song “Who Let The Dogs Out.” That DOGE rose to a high of $0.0849 after opening at $0.0784. A gain of 8.29%. He also tweeted a YouTube video the same day, which featured DOGE’s Shiba Inu riding a rocket to the moon. 

Notably, Tesla invested $1.5 billion in Bitcoin (CRYPTO: BTC) the next day. BTC traded near the $43,000 mark on that day. At press time, BTC traded 2.38% lower at $55,335.32. The apex cryptocurrency hit its all-time high of $61,683.86 on Mar. 13, 2021. DOGE too hit its all-time high of $0.084 on Feb. 8. The cryptocurrency traded 33.2% below that price point at $0.056 at press time. The day the cryptocurrency hit its all-time high Musk, rap star Snoop Dogg and “Kiss” frontman Gene Simmons all made mentions of the cryptocurrency on Twitter.

Doge Mania Fizzling Out?: Musk’s multiple tweets of late have seemingly led to misplaced surges in minor coins like Marscoin (MARS) and Shiba Inu (SHIB). As for Dogecoin itself, the Muskian impact doesn't seem to be the same as before.

This month, Musk called on Coinbase to support Dogecoin. Not only did this instance send the wrong cryptocurrency soaring, which is Shiba Inu, DOGE ended 6.08% lower for the day. 

See also: How to Buy Dogecoin (DOGE)

Dogecoin is up about 850% in 2021 to press time, with surge primarily coming early in the year driven by Musk. Over the past 30 days, the meme cryptocurrency is down 3.5% at $0.0533. 

Earlier in the month, Musk said DOGE has a “legendary item” in its arsenal — a meme shield against price drops.

Despite Musk’s optimism, some cryptocurrency experts are doubtful that DOGE would ever reach $1 levels. The co-creator of DOGE Billy Markus told Benzinga that the “price of a coin is literally what anyone wants to purchase it for at a particular time.”

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