Dogecoin is the Biggest Beneficiary of Musk, Twitter Euphoria


Reports show that Dogecoin has benefited the most right after Musk buys off Twitter.

As billionaire Elon Musk buys Twitter, the price of Dogecoin, the cryptocurrency he often promotes on social media, rises up nearly 14%. From a low of about 12 cents, the cryptocurrency’s price spiked Monday morning, reaching a price of about 14 cents at around 9 a.m. Monday before retreating slightly, according to CoinMarketCap.


The Long-term Relationship Between Elon Musk and Dogecoin

The cryptocurrency was trading at almost 14 cents, up 12.18% Monday afternoon. The price increase comes as Twitter is bought off by Musk for $44 billion. Musk has always been a huge proponent of Dogecoin, going so far as to call himself the “Dogefather” in a tweet last April. Price swings for the coin often go hand-in-hand with Musk’s tweets or actions. When he tweeted last December that Tesla would be accepting Dogecoin as payment for branded merchandise, its price increased 33% from about 16 cents to 21 cents, according to CoinGecko.


A Brief about Dogecoin

The meme cryptocurrency was originally created as a joke in 2013, but it has risen to become the 11th-biggest cryptocurrency by market capitalization, according to CoinMarketCap. The cryptocurrency’s value often fluctuates along with the promotions from celebrities like Musk, rapper Snoop Dogg, and Gene Simmons of the rock band Kiss. The cryptocurrency has no limit to the number of coins that can exist, meaning as more coins are created its price should theoretically decrease. Billionaire entrepreneur and investor Mark Cuban has said the cryptocurrency has no intrinsic value.


Dogecoin as Payment in Twitter?

As Twitter’s newest board member and largest shareholder, Elon Musk is already floating suggestions for changes he’d like to see on the social media platform. Musk also shared ideas for how Twitter should charge for its subscription membership, saying the fee “should be proportionate to affordability and in local currency,” and adding: “Maybe even an option to pay in Doge?” referring to the Dogecoin cryptocurrency.


Hints of Risk

Nevertheless, Dogecoin faces interim selloff risks following its impressive gains in the past 24 hours. DOGE’s price started correcting lower after re-testing a multi-month downward sloping trendline as resistance. The selloff risks toward the channel’s lower trendline also remain elevated due to the 200-day exponential moving average (EMA) wave near $0.16, which has been capping Dogecoin’s upside attempts since November 2021.


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