DOGE, SHIB, Twitter, and more: Analyzing Elon Musk’s effect on crypto
- Elon Musk’s recent Twitter shenanigans have caused a surge in social volume and price for Dogecoin.
- Other dog-themed meme tokens like Shiba Inu have also experienced a price increase, indicating a correlation with Dogecoin’s movements.
Elon Musk has played a significant role in the fluctuating fortunes of Dogecoin [DOGE]. His actions, or lack thereof, have always had an impact on the digital currency’s value. However, his recent move of replacing the Twitter bird logo with the Doge logo took things to another level. Interestingly, another meme-inspired cryptocurrency also experienced a surge in value around the same time as Dogecoin’s rise.
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The DOGE side of Twitter
According to Santiment, Dogecoin secured the seventh place on the top 10 hourly trend list. Notably, there was a significant increase in its social volume from 3 April.
3 April marked a peculiar occurrence where users globally observed a notable change to the iconic bird logo of Twitter. In its place was a dog logo that bore a striking resemblance to the Shiba Inu image used by Dogecoin. This sudden switch-up came as a surprise and generated an evident buzz that positively impacted the price of Dogecoin.
Dogecoin on a daily timeframe
Taking a daily timeframe view of Dogecoin, it was evident that the logo change had a significant impact. On 3 April, DOGE’s value experienced a 21.49% surge, reaching a high of $0.10. However, at the time of writing, its price had decreased by close to 4%, trading at around $0.08.
Despite the observed drop, Dogecoin was still trading above its long and short Moving Averages, which had previously served as resistance zones. Moreover, the cryptocurrency remained in a bullish trend, as evidenced by its press time Relative Strength Index line, which remained above the 60 mark.
Shiba Inu feeling the DOGE effect
The recent developments surrounding Dogecoin had a ripple effect that extended beyond DOGE to other dog-themed meme tokens, Shiba Inu [SHIB] being one of them. A daily timeframe view of SHIB revealed that it also experienced a 3.98% value increase on April 3. However, as of this writing, it had lost almost 2% of its value and was trading at approximately $0.000011.
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Interestingly, a view of SHIB’s social volume metric on Santiment did not reveal any significant spike in activity. This finding was consistent with the notion that the surge in SHIB’s price is correlated with that of Dogecoin, rather than any internal factors unique to the former.
Undoubtedly, the recent Twitter logo change has had a game-changing impact on Dogecoin and its community. While it remains unclear how long the icon switch will remain, one thing is evident: any significant move made by DOGE will have a ripple effect on other dog-themed tokens, including Shiba Inu. Thus, the Dogecoin effect on the broader cryptocurrency market is one to watch closely.