Dogecoin: Are traders waiting for Elon Musk to rescue the memecoin?

• Elon Musk’s influence drives Dogecoin’s price spikes.
• DOGE maintains relevance amid the market downturn.

Dogecoin [DOGE] was no exception to the broader market downturn as its price logged a 11% declined. Though a big name in the industry now, initially the token was dismissed as a joke.

Dogecoin gained traction following endorsements from Tesla CEO Elon Musk. Notably, Musk’s remarks on April Fool’s Day last year propelled Dogecoin to new heights.

Noting Musk’s pattern, Kaleo, an anonymous crypto analyst noted, 

“Last year Elon waited to change the X logo to DOGE until a couple of days after April Fool’s day…In before he runs it back.” 

This highlights the anticipation surrounding Musk’s involvement and its potential impact on DOGE’s price dynamics.

Elon Musk’s forever favorite 

Similar spikes in DOGE value occurred previously in December 2021 and January 2022, when Musk tweeted about Tesla considering merchandise purchases with Dogecoin, subsequently confirming the plans.

With Dogecoin, becoming people’s new favorite among altcoins, renowned cryptocurrency analyst Ali Martinez has highlighted the potential for a price surge in DOGE. He noted, 

“I feel my fellow degens have been distracted with the new shiny memecoins, but Dogecoin remains the most important altcoin in this sector.”

He further added, 

“From a technical perspective, DOGE seems to mirror the 2018-2021 pattern. If so, $DOGE could be at the very beginning of a massive parabolic bull run!” 

This highlights that over the past month, the cryptocurrency has experienced a remarkable 200% increase, nearly doubling in value.

Adding to the fray, @CharlieLuck9 added,

“dogecoin to the moon.” 

What’s next for DOGE? 

In April 2022, the disclosure of Elon Musk’s investment in Twitter, where he controlled 9.2% of the shares, led to a 20% surge in Dogecoin. Later, when news broke that Musk intended to purchase Twitter for $44 billion, another round of Dogecoin price increases followed.  

At present, amidst growing interest in newer meme coins, Dogecoin’s performance remains a subject of scrutiny. Despite its recent dip, DOGE has surged over 125% since 2024 began and has seen a 42.6% gain over the past 30 days.

Hence, the dog-themed memecoin maintains its relevance in the cryptocurrency market, captivating investors and observers alike.