Popular memecoin Dogecoin DOGE/USD has rallied by a staggering 56% over the past 24 hours and has more than doubled its price in the last week, amid Tesla chief Elon Musk’s acquisition of social networking giant Twitter.
Interestingly, Musk is widely touted to be the "Dogefather" — as he frequently mentions the cryptocurrency and engages with its community of users.
Musk has had a blow-hot blow-cold relationship with DOGE and has previously shared numerous DOGE-related memes and promoted it in tweets.
Musk's' The Boring Company, SpaceX, and Tesla all accept Dogecoin as payment for merchandise.
He even named SpaceX's 2022 moon mission DOGE-1.
Dogecoin has witnessed wild swings in the past over Musk’s tweets and announcements.
The billionaire has flirted with the idea of using Dogecoin as a payment option for a membership or paid version of Twitter.
His rants, however, have also gotten him in trouble.
A number of Dogecoin investors had sued Musk and his firms for $258 billion for racketeering this summer, alleging that they purposefully inflated the price of Dogecoin before allowing it to plummet.
In response, Musk stated in June that while he himself supports cryptocurrency, he never advised anyone to invest in the space.
Dogecoin is the ‘best crypto’ in the long term
Anndy Lian, book Author of "NFT: From Zero to Hero" tells Benzinga that Dogecoin’s price action has a history and is closely linked to Musk.
“Also, Dogecoin has strong community support. Dogecoin sub-Reddit has more than 2.2 million subscribers. Moreover, I think Dogecoin's inflationary is an advantage. There are several reasons why deflationary currencies like Bitcoin BTC/USD might never be used as money. But Dogecoin's tendency toward inflation ranks it among the best cryptocurrencies over the long term,” Lian says.
In the shorter term as long as Elon is still the Dogecoin, we will still see more rallies before the year ends as he lays out plans for Twitter, Lian adds.
Dogecoin at 50 cents before the new year
Aliasgar Merchant, lead developer of relations at Akash Network, a decentralized cloud platform, said the current trend reversal for Dogecoin seems sustainable, and the memecoin can easily hit the 50-cent mark before the end of the year.
“Since last August, Dogecoin has not broken the 30 U.S. cents mark, however, with the memecoin’s use cases skyrocketing with Musk’s takeover of Twitter, there is no reason it cannot reach the 50 cents mark before the new year,” he said.
He added that Dogecoin would see strong support between 0.0772 and 0.0792 levels, as data from IntoTheBlock suggests that approximately 27,000 addresses scooped up 5.89 billion DOGE tokens at these levels.
Whales lapping up Dogecoin
Meanwhile, Dogecoin Whale Alert, a Twitter account that tracks the movement of DOGE whales tweeted that 286,953,266 DOGE, worth $22,140,740 was transferred from a "Top 20 wallet" to a Binance wallet.
Dogecoin's ascent to prominence as the tenth-largest cryptocurrency by market capitalization was fueled by Dogechain, a layer-2 scaling solution for Dogecoin, which recently unveiled its future roadmap.
Dogechain beginning the voting process for its coin burn fueled a bullish sentiment among DOGE holders.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Visit Benzinga's Crypto Homepage - 1,000,000+ depend on Benzinga Crypto every month