Usually, the laws of demand and supply, along with buy-sell pressure, play a crucial role in determining the price of an asset. However, as far as Dogecoin is concerned, merely a single tweet from its self-proclaimed father, Elon Musk, can push up its price, irrespective of the macroeconomic conditions.
Well, a typical exhibit of the same unraveled on Wednesday. At press time, the global cryptocurrency market cap was down by 1.94% on the daily timeframe, and most assets were seen consolidating, including Dogecoin.
However, as soon as Elon Musk waved the magic wand and tweeted about a confession, the dynamics completely changed. Musk noted that it was “high time” he revealed that he was the one who let the “Doge” out. The image attached to the tweet read,
“It was me, I let the dogs out.”
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Well, this is not the first time Elon Musk has tweaked the song by Baha Men and replaced “Dogs” with “Doge.” Back in 2021, Musk tweeted something similar. Owing to his consistent referencing and backing, the community has not shied away from contending that Musk and Doge’s tale is better than Titanic.
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Dogecoin reacts to Elon Musk’s tweet
Dogecoin noted a sharp spike on the short time-frame chart right after Musk’s tweet today. Like shown below, it rose all the way up to a high of $0.08882 immediately. However, at press time, the hype seemed to have fizzled out already, with the price correcting and dropping to $0.08583.
In Feb. 2021 when Musk tweeted asking the same question, DOGE’s daily RoI spiked to 35.15%. On that day, the incline from its wick low to its wick high accounted for more than 60%.
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When Elon Musk tweeted about a new Dog-CEO for Twitter last week, the price of the asset briefly rose. However, when the name “Floki” was revealed, its pump didn’t last. Thus, the Dogecoin community has had the fear of missing out on Elon’s hype-induced party. And today’s tweet managed to heal the wounds to a fair extent.
Investors, however, continue to remain hopeful. In fact, new ones have also stepped into the market. Dogecoin accumulators have gradually inclined over the past seven days. From its low of 4.49 million, the total number of addresses possessing DOGE was up to 4.51 million at press time.
Now that Doge has been let out and accumulators are rising, will the asset start heading toward the moon? Well, the community is surely hopeful, but only time can tell.
Source: CMC
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