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

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

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

Elon Musk’s Historical past Of Dogecoin Assist

Elon Musk’s public assist of Dogecoin began on April 2nd, 2019, when he tweeted that Dogecoin is perhaps 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 improve in its value.

Noticeably, when Musk’s Tesla introduced that it might settle for Doge as cost for Tesla merchandise, Dogecoin’s value 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 value skilled a 7% hike.

In the newest occasion, Doge’s value elevated by an enormous 27% when Twitter’s board of administrators introduced that they might settle for Musk’s deal for Twitter possession.

Is The Musk Impact Waning?

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

There’s additionally proof to counsel that Musk-induced Doge rallies are short-lived and wouldn’t have a long-term impression. Doge’s value 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 value by 3%, it got here again sharply to solely below a p.c improve 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.