For all its worth, Dogecoin goes back to being just a meme-inspired cryptocurrency. Its only value comes from the fact that Elon Musk endorsed it in his way. Well, that is how DOGE gained any semblance of validation and usefulness. The token has had quite a poor performance of late. But now, it seems like Elon Musk can save it from bears.
Elon and Twitter save Dogecoin
The 16% rally of 5 April was the biggest single-day rise that Dogecoin registered in over four months. Now since Dogecoin isn’t making any stellar advancement on the developmental front, the only possible reason which could have triggered the rise seems to be Elon Musk’s Twitter development.
The DogeFather being made a member of Twitter’s Board of Directors might have been an indirect trigger for the coin. Regardless, in a single shot, the coin managed to recover all the losses witnessed throughout 2022.
As a matter of fact, within 24 hours, over 120k DOGE holders who had been noting losses since December 2021 finally noticed profit.
Dogecoin investors in profit | Source: Intotheblock – AMBCrypto
Also to be noted that while DOGE was still falling around the end of January, about 30% of the total supply (32 billion DOGE) changed its age from being held for a short term to more than three months.
At the moment, that same supply hasn’t been moved much. In fact, it is approaching the six-month mark. The short rally on 5 April certainly reestablished investors’ faith in the altcoin.
Dogecoin supply distribution by age | Source: Intotheblock – AMBCrypto
Although this might sound exciting to new investors, they might want to brace themselves for the possibility of consolidation on the price chart.
At the time of writing, the coin was trading at $0.1493, down by about 6.96% over the last day. Notably, the coin remains vulnerable to the ripple effect of the broader market cues, which are turning slightly bearish at the moment.
Dogecoin Price Action | Source: TradingView – AMBCrypto
Plus, the meme coin already shares a 0.93 correlation with the king coin. Any change in the BTC’s price will certainly influence Dogecoin’s price trajectory.
