The cryptocurrency market tends to thrive on a mix of innovation, utility, and generally, only a good meme. This week, the highlight shone brightly on Dogecoin (DOGE), the Shiba Inu-themed meme coin, after a characteristically playful tweet from tech billionaire Elon Musk despatched costs hovering.
Whereas the tweet itself referenced a scene from Monty Python and didn’t instantly point out Dogecoin, its timing, with DOGE hovering close to the cusp of the highest 10 cryptocurrencies by market cap, proved to be sufficient to ignite a firestorm of buying and selling exercise.
This newest episode serves as a stark reminder of the immense affect Musk wields over the meme coin market, and the hair-trigger reflexes of Dogecoin’s devoted neighborhood.
— Elon Musk (@elonmusk) April 15, 2024
Dogecoin Rollercoaster Trip Continues
This isn’t the primary time Musk has despatched shockwaves by way of the Dogecoin world. In 2021, his enthusiastic endorsements, together with a now-famous look on Saturday Night time Dwell the place he jokingly referred to himself because the “Dogefather,” propelled DOGE to its all-time excessive. Nevertheless, the meme coin’s meteoric rise proved unsustainable, and costs finally settled right into a decrease, however nonetheless respectable, place.
Bitcoin is now buying and selling at $62.611. Chart: TradingView
At the moment, Dogecoin sits comfortably because the eighth-largest cryptocurrency, boasting a market cap of over $22 billion. Nevertheless, there was a special narrative within the value division.
On the time of writing, DOGE was buying and selling at $0.15, down 8.4% and 22.9% within the day by day and weekly timeframes, information from Coingecko exhibits. Clearly, the Musk tweet magic didn’t work this time. Or, maybe not but?
DOGE 24-hour value motion. Supply: Coingecko
A fast take a look at DOGE’s day by day chart reveals a traditional case of value resistance, the place the coin struggles to interrupt by way of particular value ceilings. This back-and-forth value motion displays the continuing battle between enthusiastic consumers, emboldened by figures like Musk, and extra cautious buyers cautious of the coin’s unpredictable nature.
No Value Increase This Time
Elon Musk’s tweets have lengthy been synonymous with skyrocketing memecoin values, but right this moment’s surprising downturn in Dogecoin following his newest put up underscores the risky and unpredictable terrain of cryptocurrency markets.
This stark deviation from the same old trajectory serves as a poignant reminder that even probably the most influential voices within the trade can not totally management or anticipate the market’s whims and fluctuations. It highlights the inherent dangers and complexities buyers face as they navigate this ever-evolving panorama, the place sentiments can shift swiftly, leaving even seasoned merchants reeling from the abrupt modifications.
Featured picture from Pexels, chart from TradingView
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