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Will the price of a cryptocurrency be influenced by a song? Every reasonable person would refute that, wouldn’t they? The only distinction this time is that the previously stated argument is not a bluff. It would not be an irony to say that the same phenomenon occurred in the cryptocurrency room on Thursday.
Patti Page’s legendary song “How much is that doggie in the window” may have been what pushed up Dogecoin’s price by 12-odd percent recently. The meme-coin subjected itself to an ironic movement right after Tesla CEO Elon Musk tweeted about it.
Musk has now made it a routine of sorts to manipulate the coin’s price time and again by tweeting about it. What’s more, less than 24 hours ago, Musk also revealed that he was the ultimate hodler of the coin, adding,
“Yeah, I haven’t & won’t sell any Doge.”
This, obviously, had an immediate impact on the price and the Doge community on Twitter seemed pretty excited about the same. Once again, they are envisioning the price of the coin hitting the $1-mark in the near future.
WFurthermore, Musk did not stop with that tweet. Indulging in more high-energy humour, Tesla’s executive said that DOGE’s hashing capacity had the ability to reach the 0.1kWh range. Musk also believes that in the future, single-layered networks will be able to handle all human transactions. Furthermore, achieving decentralised finance is a “noble” and “important” goal, in his words.
Prior to the SNL saga, the meme-coin was easily placed in the top-five, and it was still ranked seventh at press time. DOGE had a market share of just more than $49 billion at the moment.
Musk’s tweets have an instant effect on the market, but measurements show that the coin has not been able to maintain the same intensity for longer periods of time. For starts, the coin was nearing the end of a 25% weekly decline, compared to a mere 1% drop in the previous 24 hours at the time of publication.
Contrary to the community’s hype on Twitter, the amount of big transactions was almost unaffected on 20 May, as shown by the chart above. Following a strong reaction to Musk’s tweet in the immediate aftermath, the coin’s price began to fall.
What’s more, other Into the Block indicators also signaled that the market sentiment with respect to the meme coin was “bearish.” The ownership charts also weaved a similar story. The number of addresses hodling the coin dipped to 1.98 million, when compared to January’s 2.26 million.
So, in the end, DOGE only dances to Elon Musk’s music in the short term. Nonetheless, if Musk wishes, this assertion, too, could become a joke in the near future!