Dogecoin has become the 9th largest cryptocurrency by market cap again, surpassing Polygon (MATIC) which had been performing well in the past few weeks. The credit for this achievement goes to Elon Musk, who is known as the “Dogefather.” Is Elon Musk Set to Rocket Dogecoin Price to $5? Let’s take a look at it in more detail.
Elon Musk Strikes Again: Dogecoin Surges 5% After Billionaire’s Latest Tweets!
Over the weekend, Super Bowl LVII took place and Rihanna made a memorable return. Billionaire Elon Musk was also seen with Rupert Murdoch, who is the chairman and CEO of News Corporation and the owner of Fox News.
Dogecoin
After someone posted a picture of Elon Musk and Rupert Murdoch together at the Super Bowl and asked what they were talking about, Elon Musk replied on Twitter saying they were discussing “Dogecoin.” As usual, the price of DOGE went up after Musk’s tweet.
After Elon Musk’s tweet, the price of DOGE went up by 5%, reaching $0.086 and surpassing MATIC’s market cap. Although DOGE’s price went down a bit in the hours that followed, its market cap is still higher than MATIC’s at $10.8 billion.
The meme coin is not out of danger yet. Another strong rally from MATIC like the one seen last week could easily put it back in a lower position. At present, MATIC has a market cap of $10.29 billion, which is only slightly lower than DOGE’s market cap of $10.8 billion. For cryptocurrencies with large market caps, a difference of less than $600 million can be significant.
Is Elon Musk Set to Rocket Dogecoin Price to $5?
Dogecoin Price to $5: DOGE/USD Weekly chart showing the price – GoCharting
Like other cryptocurrencies, Dogecoin’s price has been influenced by the overall trend of Bitcoin and the broader crypto market. In the last 24 hours, it has only gained 1.17%. The market’s slower momentum has caused the price to drop back to the $0.08 support level, where buyers are trying to maintain the price. Here are five key points explaining how Elon Musk influences Dogecoin’s price:
- Musk’s tweets: Elon Musk’s tweets are one of the most significant factors impacting Dogecoin’s price. Whenever he tweets about Dogecoin or mentions it in public, the price tends to surge as his large following takes notice.
- Musk’s influence: Elon Musk is a highly influential figure, and his words carry significant weight in the business world. He is known to have a large following of supporters and investors, which has the potential to impact Dogecoin’s price.
- Popularity and awareness: Elon Musk’s support for Dogecoin has helped increase its popularity and awareness, leading to more people investing in it. This increased demand for the coin has been another factor driving up its price.
- Media attention: Whenever Elon Musk talks about Dogecoin, it tends to grab the media’s attention. This widespread coverage often leads to even more people becoming aware of Dogecoin and can result in increased investment and demand.
- Speculation and hype: Elon Musk’s involvement in Dogecoin has created a lot of speculation and hype around cryptocurrency. This hype has led to more people investing in Dogecoin, with the expectation of making a profit, further driving up its price. Dogecoin meme culture: Dogecoin is a meme-inspired cryptocurrency, and its community is known for being humorous and lighthearted. Elon Musk’s involvement in Dogecoin fits well with this culture, and his tweets often reflect this. As a result, his support has helped further strengthen the community, increasing the coin’s popularity and demand.
- Elon Musk’s company involvement: Elon Musk’s company, SpaceX, announced that it would accept Dogecoin as payment for an upcoming space mission, which has led to even more speculation and hype around the cryptocurrency. This news has been another factor driving up Dogecoin’s price.
- Elon Musk’s influence on investor sentiment: Elon Musk’s tweets and statements about Dogecoin can impact investor sentiment towards the cryptocurrency. If Musk expresses optimism or confidence about the coin, investors may view it as a good investment opportunity and buy more, increasing the price.
- Elon Musk’s role as a market mover: Elon Musk’s involvement in Dogecoin has positioned him as a market mover, meaning that his actions can influence the cryptocurrency’s price. For instance, Musk’s appearance on Saturday Night Live in May 2021 caused Dogecoin’s price to fall by over 30%.
- Elon Musk’s impact on broader cryptocurrency trends: As a prominent figure in the tech industry and a well-known advocate for cryptocurrencies, Elon Musk’s opinions, and actions can impact the entire cryptocurrency market. For instance, his criticism of Bitcoin’s energy consumption led to a significant drop in the value of the cryptocurrency, which also affected other digital assets like Dogecoin.
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Conclusion
While it’s difficult to predict the future of any cryptocurrency, it’s clear that Elon Musk’s involvement has been a major driving force behind the popularity and success of Dogecoin. With his frequent tweets and support, he has helped to create a strong and enthusiastic community of investors, traders, and holders.
Furthermore, Musk’s recent announcement that his company SpaceX will accept Dogecoin as payment for an upcoming space mission has sparked further excitement and speculation, leading many to believe that Dogecoin’s value could continue to rise.
While it’s uncertain whether Dogecoin will reach $5 or not, it’s clear that Elon Musk’s continued support and involvement will continue to impact the cryptocurrency’s price and popularity. As such, Dogecoin will likely continue to be a coin to watch in the ever-evolving world of cryptocurrencies.
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