Dogecoin, a simple meme coin at the moment, is one of the top contenders for becoming the next big altcoin. The hype train pulled a lot of people aboard it and at the same time also pissed off some big names. But the only thing which matters is how long will this ride be and where will the train stop.
Throughout the last few months, DOGE’s movement has kept everyone on their toes. Although the coin was worth virtually nothing at the beginning of 2021, at present it’s worth $0.251. In simple terms, the coin made a 5249.31% jump. At its ATH in May the coin was up by 14,540%. These numbers are proof of how much DOGE influenced investors, or at least the DOGEfather did. Discussing the meme coin Scott Melker commented,
“I don’t talk about it (Doge) very much because I was a guy trading DOGE under a penny and making money lots of time and I’m not a big fan of coins that have no inherent value and pump because of Elon Musk.“
Dogecoin Price Analysis: 01 July
On June 28, Elon Musk’s birthday, Dogecoin pictured a strong hike of 8.6%. Since then, however, the coin has gone back down to its price levels before the said date. At press time, DOGE was trading at $0.24. For over two weeks, the alt continued to consolidate within the $0.285 and $0.21 levels, and it will likely continue doing so.
The Bollinger Bands had remained parallel for the last few trading sessions, but at the time of this report, a slight convergence towards the lower band was observed.
The Awesome Oscillator saw bearish momentum dominating as red bars continued to follow the green bars. The Relative Strength Index (RSI) could be seen heading towards the bearish neutral zone, closer to 40.0.
While the indicators did hint at a price fall going forward, the crypto may still stay above the $0.21-mark.
DOGE Crash After Musk Stops Tweets
Musk had stopped tweeting about the coin back in May. This was after consistently tweeting about the coin for months. Driving the coin price up a staggering 11,000 percent within this time frame.Speculations were that the SEC had told Musk to stop tweeting. His tweets had huge sway on the buy and sell patterns in the coin. This looked much like market manipulation. And that is right up the alley of the SEC. So there has not been word from the CEO about Doge in a while. Until recently.
Dogecoin’s growth over these past months can be solely attributed to Musk. With every iteration of his tweets, the price of the coin surged. Investors took this as a sign that there might be adoption coming for the coin. As the price grew, more investors bought into the coin.
Musk had seemingly taken a break from tweeting about Dogecoin since May. After a final tweet promoting Dogecoin towards the end of May, Musk stopped tweeting about Doge entirely.
No one knows for sure the reason for the break. But it was during this period that Tesla had announced that they would stop accepting Bitcoin payments. The CEO had clarified that the reason for this was due to the environmental impact of Bitcoin mining.
Along with these and other negative news coming out, the crypto market took a nosedive. Prices were down all across the board. And Doge was not left out of the bloodbath.
Investors began calling for the billionaire to resume tweeting about Dogecoin. Which had by this point lost over 60% of its all-time high value. But Musk seemed committed to not tweeting about Dogecoin.
The price which had risen significantly to as high as $0.80 went back down below $0.20. Before making a small correction and receiving back up above $0.20. Where it currently sits trading in the $0.20 range.
Elon Musk Resumes Tweeting About DOGE
Towards the end of June saw Musk returning to tweeting support for the coin. The CEO had earlier tweeted about Shiba Inu, the dog breed which is the icon of Dogecoin. But that tweet could have been interpreted as either support for Doge or support for SHIB, a coin made in response to Dogecoin.
Then on June 28, Musk tweeted support for a Doge upgrade posted by software engineer Ross Nicoll on Twitter.
This had a bit of sway in the market. Prices rose slightly after the tweet went live. But not by a large margin.
Elon Musk’s Tweets Fail To Move DOGE Prices
For the first time, it seems Elon Musk’s tweets have no effect on Doge. The billionaire had tweeted earlier about doge but this time, there was no reaction from the coin. In fact, the coin is down 2% since the tweet went live.
Musk is notoriously known for pushing the price of Doge with his tweets. His tweets were single-handedly responsible for pushing the price of the coin up over 20,000 percent. The price of Doge would shoot up minutes after each tweet went live from the last couple of months. Leading to concerns of insider trading, which yielded nothing useful.
But now, Musk’s tweet has failed to move the price of the coin. Elon Musk had earlier tweeted “Release the Doge” but the coin has refused to move.
So, this leads us to the question, has Musk lost his edge over Dogecoin?
Developments In Dogecoin Core
Following the increased popularity of the coin, there have been numerous developments going on in the project. Developers contributing to Dogecoin Core proposed a fee reduction change.
The proposal suggested reducing average transaction fees by 100x. It would split fee control between miners and node operators. This would require less reliance on core development. Leading to a functional free transaction space that would help to keep the network healthy.
The proposal was posted on Twitter by software engineer Ross Nicoll. Nicoll is a contributor to Dogecoin Core.