Tesla CEO Elon Musk has reactivated the market with a meme he recently shared. The person who prompted Musk was a Zagreb University student with 5,000 tachis.
Elon Musk is back on stage
cryptocoin.com As you follow, Musk was very active last weekend. He triggered over 5x rallies in the price of 3 altcoins with 3 different tweets.
Twitter CEO is talking about Dogecoin in a new tweet today. A Twitter user, @EPavlic, recently shared the following meme, tagging Dogecoin founder Billy Markus and Elon Musk.
Such Doge, much hair! 😂🐾 @BillyM2k @elonmusk @dogeofficialceo pic.twitter.com/imaUn8BNLX
— Endrina Pavlić (@EPavlic) May 16, 2023
Elon Musk then responded with an image about what humans do to dogs. Meanwhile, Dogecoin, a dog-themed cryptocurrency, had the opportunity to raise over 3%.
As can be seen from the chart below, the DOGE price moved only during Musk’s post during the day. The price rally was not as big as expected. However, it helped Dogecoin stand out from the general market. All altcoins were in the red, including BTC and ETH, while the DOGE price was up 3%.
Is Elon Musk as influential as he used to be?
There is no doubt that Musk, as one of the richest people in the world, has tremendous influence on Dogecoin. In 2021, influencing the price of DOGE began to take the first steps. It goes without saying that Musk had a hand in DOGE’s 27.668% all-time increase.
However, as market conditions worsened in 2022, the correlation between Dogecoin and Musk dropped. In fact, Musk has tweeted about DOGE several times. But it had little or no impact on price action. The most successful move in recent times has been to change the Twitter logo to Dogecoin, which triggered a three-digit rally in Dogecoin price.
The Twitter move resulted in a 30% increase in DOGE price in less than 24 hours. However, the rally only lasted one day, although the logo remained on the social media platform for more than three days.
How about the DOGE price?
Technical analysis on the weekly time frame gives contradictory signs for the future Dogecoin price trend. While the price broke out of a long-term descending resistance line (dashed), it failed to rise above the $0.115 resistance area.
It is currently trading very close to the bottom of the triangle at $0.067. A break across the height of the entire triangle would push the price up to $0.04, hitting a new year low in the process.
However, a break from the resistance line of the triangle will invalidate this long-term DOGE price prediction. In this case, the most likely draft for future price action would be for the average price to rise to $0.105.
