Dogecoin jumps after Elon Musk tweets about it. This happened after UberFacts tweeted that Musk is predicted to become the first trillionaire thanks to SpaceX, and he replied, “In Dogecoin.” This has taken the market by surprise again. Dogecoin jumped past 25 cents in an hour before consolidating back to almost previous levels. Even the fans are happy as Elon Musk has talked about Dogecoin after a long time.
— Elon Musk (@elonmusk) October 22, 2021
Elon and Doge
We should note that while almost all tokens are nearing their all-time highs and some have even broken them, Dogecoin is far behind. This shows that the price of the token was super pumped, and it was not a genuine rise. It was all hype created by Elon Musk and social media. Yes, there are developers working on Dogecoin now, and the network effect is strong, but the poor price recovery is a big problem.
Those who bought at the top are still nearly 65% down in their holdings. On the other hand, even BTC holders are mostly in profit now. Elon’s tweets are also unable to do anything as the price seems to have stuck below 25 cents for a long time now. While the hype is able to increase the price for a while, it dumps back quickly. So, for a sustainable price rise, a big development is required in Dogecoin. The hype is going to bring only temporary jumps.
What are your thoughts on Elon Musk’s tweet, after which the price of Dogecoin jumped? And do you think such kinds of price rises are any good for the token in the long run? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.