Following Elon Musk’s Twitter acquisition confirmation last week, the price of Dogecoin (DOGE) went through the roof. For the first time since May of this year, DOGE surpassed the $0.01 mark and temporarily exceeded $0.14. On Monday, DOGE took a small breather, but it was not to last long.
As numerous members of the Dogecoin community predicted, a tweet from Musk would be enough to start another DOGE rally. And Musk did not disappoint the Dogecoin community.
At 00:17 EDT, the CEO of Tesla and SpaceX tweeted the following image, which shows a Shiba Inu, the memecoins mascot wearing a Twitter shirt and a pumpkin with a Twitter logo.
— Elon Musk (@elonmusk) November 1, 2022
Even though Musk only added a winking smiley as text, it was clear to the community that DOGE will soon be integrated as a payment method on Twitter. It was precisely this rumor that also drove the skyrocketing price gains of the last few days.
Elon Musk, The Dogecoin Dog Whisperer
Musk’s gigantic influence on the DOGE price is nothing new for the crypto market. In recent years, Musk’s tweets have caused the price to literally explode time and time again.
The chances that the richest man on earth will really integrate DOGE on Twitter seem fairly high after the tweet. Back in April, Musk already expressed the idea of letting Twitter users pay with the memecoin for his premium subscription service Twitter Blue.
In addition, rumors have been circulating in recent days that Musk plans to make all users pay $20 for a blue check mark. DOGE could also be used for this purpose.
That Musk is making good on his promises to the DOGE community is also evident in the fact that some Tesla products can already be paid for with Dogecoin on the automaker’s website. In addition, the Boring Company accepts the cryptocurrency as a means of payment for the use of the Las Vegas Loop.
Because of the massive influence on the market – some people may already call it manipulation – not everyone believes Musk has altruistic intentions. In June, a $258 billion lawsuit was filed against Musk, SpaceX and Tesla for manipulating the DOGE price.
In September, the lawsuit was expanded to include seven new investors and six new defendants, including his tunneling company, Boring Co.
Musk and the other defendants are accused of manipulating the Dogecoin price over two years. After a gigantic rise of over 36,000%, the billionaire allegedly realized his profits and subsequently caused a crash. In this way, Musk and Co. “earned tens of billions of dollars at the expense of other investors,” according to the complaint.
At the time of writing, Dogecoin was trading at $0.1463, shooting into overbought territory, with the RSI at 87.