VINE coin’s price action explained – Elon Musk’s update and its impact

Key Takeaways 

Vine coin surged over 40% in the week following Elon Musk’s plans to relaunch the X-owned video app with an AI twist. Will the VINE rally extend? 

On the 24th of July, Elon Musk indicated that the X-owned video app Vine would return with a focus on ‘AI-form’, triggering the Vine coin [VINE] rally.

Reacting to Musk’s post, the Vine app’s co-founder, Rus Yusupov, immediately posted a video that appeared to be AI-generated. 

On the 22nd of July, Yusupov made another post that suggested the platform could be AI videos like Musk implied. He stated, 

“Imagine a feed of short viral AI videos.”

Why VINE mooned

The Instagram-like Vine app was acquired by X (formerly Twitter) in 2021, but was shut down in 2017. Rumors of a potential relaunch began spreading in January 2025, when the VINE coin debuted.

VINE coin was created and launched via PumpFun in January 2025 by Yusupov, stating that it would be used in the Vine app ecosystem. 

Although details have not been made publicly available whether this will still be the case when the app relaunches; the token mooned after the recent update. 

The memecoin doubled from $40 million market cap to $80 million before easing to $54 million as of press time.

In January, VINE rode the broader Solana [SOL] memecoin surge to $480 million but tanked to $25 million afterwards. 

On the price action front, the token spiked 139% after the Musk update, rising from $0.035 to $0.085. But it erased most of its gains to about 40% weekly gains as of press time.

In the past 24 hours alone, the token declined from $0.066 to $0.052, marking an 18.9% plunge.

Based on the Fibonacci retracement tool (yellow) placed between the May high and the June low, the pullback was back in the golden zone that always triggers a recovery in most cases. 

If the typical set-up plays out, VINE could consolidate around $0.05 before attempting another run-up, subject to positive market sentiment. 

That said, the token holders surged from 94K to 97K ahead of speculation that Musk could unveil details on the video app and possibly include the token. It remains to be seen whether it will be included in the app’s ecosystem. 

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion