Twitter CEO Elon Musk Continues to Influence Dogecoin Price
Dogecoin (DOGE) is up 6% as a result of Elon Musk’s new tweet skyrockets
Elon Musk remains one of the most important factors influencing the Dogecoin price, as the Twitter CEO demonstrated once again. Musk made an obvious joke when he wrote,
“High time I confessed I let the Doge out.” He also shared an image with an inscription.
In the scrawled script, the image reads, “It was me, I let the dogs out.
” Within minutes of Musk’s tweet, the Dogecoin price increased by 6.6%. Shiba Inu saw a 2.5% price increase, most likely due to Musk’s use of the plural form of a dog. As always, we can only speculate on what Musk’s tweet means or whether it has a deeper meaning. The Dogecoin community immediately revived rumors that Musk is implying that DOGE will be integrated into Twitter. However, the theory appears to be highly improbable.
Musk responded with, “Fact check me @CommunityNotes.”
Surprisingly, just hours before Musk’s tweet, the Community Notes Twitter account posted a message stating that beginning today, users will be notified when a community note is displayed about a tweet to which they have replied, liked, or retweeted. “This helps give people extra context that they might otherwise miss,” according to the announcement.
As a result, Musk’s latest Dogecoin tweet appears to have been intended to draw attention to Twitter’s new feature while also demonstrating his fondness for DOGE. The recent example of an Elon Musk tweet is emblematic of DOGE price behavior. Previously, almost every tweet from Elon Musk resulted in a sudden increase in the price of Dogecoin.
Dogecoin is even being studied for the “Elon Musk” effect.
According to an older Blockchain Research Lab study, there was a three percent price increase on average for all 47 events after Musk tweeted about DOGE. Dogecoin typically experiences an immediate and very large price spike, followed by another 45-minute price spike. Following that, the returns returned to the level of the first price spike. This is exactly what we are seeing this time as well. The price of Dogecoin remains within its trading range. However, a look at the 1-hour chart reveals that the DOGE price surge was not particularly significant. The Dogecoin price is currently in a range between US$0.08 and US$0.09.
Elon Musk’s rally ended in the middle of the range, well before the key resistance at USElon Musk’s rally ended in the middle of the range, well before the key resistance at US$0..
09 could even be tested. DOGE was trading at US$0.0871 at the time of writing, indicating a first retracement of the impulsive move.
