Dogecoin (DOGE) Price Fails to Skyrocket even after Elon Musk’s Endorsement Tweet
On July 1, 2021, Tesla CEO and the unofficial godfather of Dogecoin (DOGE), Elon Musk tweeted at around 8:43 am UTC to show that he endorses the controversial crypto. The billionaire entrepreneur captioned the tweet “Release the Doge!” The concerned tweet involves a Godfather-themed meme that shows Don Vito Corleone, the iconic character played by Marlon Brando, along with the text:
“You Come To Me At Runtime To Tell Me The Code You Are Running Does Not Compile.”
Right after this endorsing tweet, the exchange rate of the DOGE/USD pair jumped by around 8.42% from US$0.24 to US$0.261. However, this price jump was closely followed by a sell-off that brought the DOGE price back to US$0.247. At this point in time (at around 9:24 am UTC), Elon Musk again tweeted a gibbering messaging saying:
“Baby Doge, doo, doo, doo, doo, doo, Baby Doge, doo, doo, doo, doo, doo, Baby Doge, doo, doo, doo, doo, doo, Baby Doge.”
This second tweet made the price of Dogecoin increase by 5.22% from US$0.247 to US$0.260. Though the DOGE/USD pair tried to reclaim US$0.261, the intraday high, riding on the Elon Musk factor, the profit takers kept offsetting the upward movement of the price.
At press time, DOGE price was down by -2.66% and was trading at US$0.2412. This is a major trend reversal. It is the first time in the history of meme-based crypto Dogecoin’s lifespan that Elon Musk’s tweets didn’t lead to a bullish price rise. Many analysts say that this hints at a decline in the influence of tech billionaire Elon Musk on the crypto market.
Tesla CEO’s whole-hearted endorsement of DOGE led to a massive surge in the retail price. His tweets became so influential that in early May 2021, the market capitalization of the cryptocurrency peaked at almost US$100 billion. At this point in time, the price of DOGE increased to an all-time high (ATH) at US$0.7376. However, the exchange rate of DOGE/USD has corrected by almost half than what it was 2-months back. It is now trading at around US$0.2412.
While DOGE witnessed a brief period of price jump followed by a correction, the price of its copycat meme coin, Baby Doge Coin (BABYDOGE), jumped significantly after Elon Musk’s second tweet. Before Musk’s 2nd tweet, the price of BABYDOGE was around US$0.00000001. However, after the tweet, it rallied by over 35%. At press time, Baby Doge Coin was up by over 96%.