Major Elon Musk Announcement Fails To Spur Dogecoin Rally, Here’s Why

Elon Musk’s Boring Firm introduced that they may accept Dogecoin($DOGE) as fee for rides on Loop, its Las Vegas transit system. 

Replying to the CNN article concerning the announcement, Elon Musk tweeted his assist for Doge wherever doable. Regardless of Musk’s public assist of the meme coin, Doge skilled solely a modest  3% surge to a worth of $0.06924. Even this surge was short-lived as the worth fell to $0.06818, with a internet worth enhance of lower than a % over the past 24 hours. 

Elon Musk’s Historical past Of Dogecoin Help

Elon Musk’s public assist of Dogecoin began on April 2nd, 2019, when he tweeted that Dogecoin is likely to be his favourite cryptocurrency. Since then, Musk has made a series of tweets and public feedback, reaffirming his assist for the forex. His tweets about Doge are sometimes adopted by a pointy enhance in its worth.

Noticeably, when Musk’s Tesla introduced that it might settle for Doge as fee for Tesla merchandise, Dogecoin’s worth went up by 11%. Equally, when Musk revealed that he wouldn’t promote his Bitcoin, Ethereum, and Doge holdings regardless of excessive inflation, Doge’s worth skilled a 7% hike.

In the newest occasion, Doge’s worth elevated by a large 27% when Twitter’s board of administrators introduced that they’d settle for Musk’s deal for Twitter possession.

Is The Musk Impact Waning?

Musk, the self-proclaimed dogefather, has pushed Doge’s worth a number of occasions. Nevertheless, his Boring Firm’s announcement to simply accept Doge had solely a modest impact on its worth. It seems that Musk’s assist isn’t creating the identical enthusiasm. Based on some, the bear market might be slowing Doge’s rise. 

There’s additionally proof to recommend that Musk-induced Doge rallies are short-lived and would not have a long-term influence. Doge’s worth jumped by 27% following Twitter’s acceptance of Musk’s possession bid. Nevertheless, the rally was adopted by a significant slide, which left Doge at a rise of solely 11% for these 24 hours. Equally, whereas Boring Firm’s announcement elevated Doge’s worth by 3%, it got here again sharply to solely below a % enhance for the final 24 hours. 

Musk additionally just lately made feedback stating that he by no means requested anybody to put money into the meme coin himself. The feedback got here in response to a lawsuit that sued Musk for $258 billion, labeling Musk’s assist of Doge as participating in a pyramid scheme.

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