Elon Musk loses influence on Dogecoin
Date: 2023-07-20 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
Elon Musk's loud statements in the media and social networks have repeatedly led to a sharp increase in the price of Dogecoin
However, his latest tweet mentioning the popular memecoin did not cause a significant price movement. An analysis of historical data suggests that we are witnessing the first signs of the eccentric billionaire's waning influence on the DOGE community.
A brief history of the impact of Musk's tweets on the price of DOGE
It all started back in 2021, when a series of cryptic Twitter posts and media statements turned out to have a direct impact on the price of DOGE.
On May 8, 2021, during his famous monologue on the Saturday Night Live (SNL) show, Elon Musk called cryptocurrency a "hustle". The chart below shows that after that, Dogecoin quotes sank by almost 52% - from $0.69 to $0.31.
Most recently, on April 3, 2023, the DOGE logo unexpectedly appeared on the Twitter homepage. Investors rushed to buy the memecoin, believing that the social network plans to use Dogecoin for payments. Within 24 hours, the price of the asset increased by 35%, from $0.075 to $0.11.
However, Musk's latest tweet mentioning DOGE, published on July 17, did not lead to a significant movement. Given the above historical precedents, members of the crypto community began to assume that the owner Twitter does not have the same influence on the coin.
Dogecoin miners gather strength
Currently, miners control about 3.2% of the total amount of DOGE in circulation. Therefore, strategic investors can turn to them in search of trading tips.
Notably, miners have taken a bullish stance in recent weeks. Between July 6 and July 18, they replenished their reserves with 50 million DOGE.
The Miner Reserves metric tracks changes in the balances of wallets owned by miners. The growth of reserves, as a rule, indicates their positive attitude. Since the trading activity of miners has a significant impact on price dynamics, their actions can push Dogecoin up.
DOGE price may return to $0.085
Despite the fact that Elon Musk's tweets did not affect the price of the asset, bullish miners could push DOGE to $0.08. However, to do this, they will have to overcome a wall of sales of 270,800 addresses that purchased 34.9 billion coins at an average price of $0.070. Profit-taking by this cohort of investors could trigger a reversal.
If it falls below $0.06, the initiative will go to the bears. 271,000 wallets that bought 4.88 billion Dogecoin at a minimum price of $0.059 will provide some support to the memecoin. But if they do not resist, the asset will face a further decline in the direction of $0.055.
