The curious case of the DOGE-Musk relationship and what’s in store for the future
Looking at the price movements of Dogecoin (DOGE) in April, it can be speculated that the Tesla CEO doesn’t just build and drive cars but has an interest in driving tokens of the cryptocurrency market as well. According to the latest IntoTheBlock newsletter, Elon’s takeover of Twitter spiked a massive interest in the meme coin all over again, leading to significant price movements.
At the time of writing the DOGE coin was trading at $0.13. The token was 0.6% up in the last 24 hours and 1% up in the last seven days as per data from CoinGecko.
On 30 April, the token closed at $0.12, however, a tweet from Mark Cuban about solving Twitter’s spam issue with the DOGE clubbed with a response from the Musk led to the coin functioning in the green on 1 May.
The Elon Effect
As per additional data from the IntoTheBlock newsletter, the price of the token first spiked by 16% to a price of $0.17 when the Tesla CEO bought 9% of Twitter. On 26 April, the price of the token further jumped to $0.16 with Musk’s full acquisition of Twitter.
The number of google searches also reached a 90-day high this week, giving it a score of 100. Furthermore, the Google trends score for the meme coin grew only to a score of 5 this week in comparison to May 2021 when the score spiked even higher.
Self-driven cars: Boring much?
This isn’t the first time that Musk’s Twitter activity has driven the performance and popularity of the token. The year 2021 saw various instances wherein the price of the token spiked and declined based solely on Elon Musk’s Twitter activity. The tweet sent out on 8 February 2021, 28 April 2021, 14 August 2021, and 14 December 2021. The chart given below further points out the price movements based on the Tesla CEO’s tweets.
Furthermore, data from Santiment points out toward a rise in the volume of the meme coin post Elon Musk’s activity on Twitter. The volume chart further depicts areas with extremely low volume indicating toward inference that the meme coin is mainly driven by the words of the Tesla CEO. On 24 April 2022, the token witnessed a volume of approximately 319 million that rose to 6.88 billion on 26 April 2022.
Will master give DOGE a sock?
Upon looking at the price charts given above and analyzing the price movements of the meme coin before and after the tweets of the “DOGE father”, it can be certainly speculated that the hype around the token is usually a result of Musk’s personal views. Furthermore, looking at the inconsistency in the performance of the token is all the more reason to believe that the future of the DOGE is full of anomalies.
While Dobby may be a free elf, looks like DOGE will always have a master!