Can Elon Musk’s ‘damage management’ interventions help Dogecoin’s price recover?

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Elon Musk, the CEO of Tesla, took the price of Dogecoin on a wild journey. In reality, Musk’s presence on Saturday Night Live generated hype for the meme-coin; nevertheless, the coin’s price plummeted that day. On Saturday Night Live, Musk jokingly referred to the memecoin as a “hustle.” Following the conclusion of the broadcast, the coin dropped by more than 20%, reaching 44 cents.

Dogecoin’s price, on the other hand, began to recover on Tuesday morning after Musk asked his 54 million Twitter followers if they wanted Tesla Motors, his car company, to begin accepting Dogecoin as a payment form. Yes was chosen by 78.2 percent of the 3.9 million people who replied to the vote.

After a brief 10% increase – from 46 cents to 50 cents on Tuesday – the meme-coin was trading far below its all-time high at the time of publication.

CNN’s Paul R La Monica accurately predicted this price movement as a “buy the rumor sell the news” tactic right before Musk’s SNL performance. He recently said,

“People in their right mind expected Musk to go on SNL and wax rhapsodic for 90 minutes about all the virtues of Dogecoin and push it to ever high prices. That didn’t happen. He made fun of it.”

He further added,

“Right now Musk needs to do a little bit of “damage control,” I am surprised Doge is falling this much!”

Paul emphasised the positive poll outcome, pointing out that the majority of those following Musk were his supporters, not trolls.

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Aside from the Tesla survey, Musk recently announced that SpaceX would fund the Doge-1 satellite launch in Doge. This declaration aided the coin’s recovery from its lows after SNL’s bloodbath. According to Musk’s release,

According to Paul, Musk’s move was part of his “damage control.” However, YTD figures show that the coin’s price has increased by more than 10,000 percent this year. Despite oscillating in the $0.49 range at press time, Doge was comfortably ranked fourth on CMC‘s charts.

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