Dogecoin has seen a massive price explosion over the past few days. The meme coin price has more than doubled in the last 7 days. On the one hand, this was due to the increase in the overall market, but above all to the takeover of Twitter by billionaire Elon Musk. But how exactly is this takeover and the Musk name related to the Dogecoin explosion?
In this article, we want to take a closer look at Elon Musk’s takeover of Twitter and analyze how it affected the Dogecoin price.
How has the Dogecoin price moved in the last few days?
The Dogecoin price has seen a massive explosion over the past few days. In the last 7 days, the DOGE price is currently up more than 120%. This meant the price more than doubled in a week. The increase started on November 25, 2022 at a price of 0.062 US dollars and continued more or less continuously.
Most notably, on November 29th, DOGE price saw a massive rally from $0.085 to a peak of $0.145. On November 1st we saw the previous top at $0.157 and only slight declines after that. It could still be that the price will continue to rise over the next few days.
What were the reasons for the massive price explosion?
The massive price explosion of the Dogecoin price is due to a fortunate coincidence of 3 factors that occurred at the same time:
- The UK approved cryptos
- Bitcoin price saw a breakout above the $20,000 mark in the past few days. This triggered a strong bullish phase in altcoins.
- Almost at the same time, the takeover of Twitter by the US billionaire Elon Musk was finalized. He is now the owner and CEO of the company.
These three factors came together at a favorable time so that Dogecoin price could rise massively.
Why did Elon’s Twitter takeover BOOST Dogecoin?
Elon Musk’s takeover of Twitter has been the dominant theme in global news for the last week. Twitter is considered to be one of the most important companies in the world when it comes to social opinion-forming and the dissemination of current news. By purchasing the company, Musk now has control of this powerful tool.
Elon Musk is generally for a relaxation of community guidelines on Twitter. Accordingly, the billionaire wants to turn the social media platform into a digital space that reflects a broader range of opinions. Musk is considered to be classically liberal and advocates a broad definition of freedom of expression. Many are hailing the move as a victory for freedom of expression, while critics warn against overly lax interpretation of community guidelines.
In addition, Elon Musk is considered a big fan of Dogecoin. In recent years he has repeatedly started posting the well-known Shiba Inu meme or hashtags about the DOGE. With the takeover, many investors hope that the meme coin will receive even more attention on Twitter. Increased attention usually means higher prices for meme coins.
How long can Dogecoin price increase last?
Massive price explosions are nothing new for Dogecoin. Meme coins are known for being able to increase in value massively within a few hours to days. They trigger extremely high FOMO, which attracts more speculative investors and further increases the price.
As Elon Musk and his first changes on Twitter should continue to be in the news for the next few days, we could actually see further increases in the Dogecoin price. However, Dogecoin is also known for losing steeply in price. It is difficult to predict when the hype will end.
Should you invest in the DOGE now?
An investment in the DOGE is associated with a certain risk right now. Because especially these days, the FOMO for the meme coin is particularly high. A drop in the Dogecoin course cannot be ruled out. Nevertheless, you can speculate on further increases in the short term. It wouldn’t be the first time that the DOGE course has increased in value for a few more days.
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Source: https://cryptoticker.io/en/how-is-doge-price-related-to-elon-buying-twitter/