Dogecoin (DOGE), the cryptocurrency that started as a joke, has seen unexpected ups and downs in the market. In recent months, its value has seen notable changes, partly fueled by the antics of Elon Musk and the speculation he stirs up on his popular X platform.
Sharp Rise and Musk’s Speculation
One of the key drivers behind Dogecoin's recent price surge has been rumors that Elon Musk might integrate the cryptocurrency into his platform X for payments. Musk, who bought Twitter in 2022 and rebranded it as X, has long been a vocal supporter of Dogecoin, posting memes and jokes about the coin. This ongoing interest has acted as a turbo boost for the cryptocurrency, and it seems to have kicked into high gear in recent weeks.
In early November 2024, there was a fresh spike in Dogecoin interest when Musk posted a mysterious tweet featuring a dollar sign icon next to podcaster Joe Rogan's profile.
Nima Owji, who describes himself as an "independent app researcher," speculated:
True
— Elon Musk (@elonmusk) November 22, 2024
Musk simply replied, “True.” Naturally, X users jumped on this, interpreting it as a hint toward a potential X Payments feature that could use Dogecoin for transactions.
X payments using doge ?
— Astekz (@astekz) November 22, 2024
This idea quickly gained traction among cryptocurrency enthusiasts, and DOGE's price shot up, reaching a 3-year high of $0.43 by mid-November.
In the past week, Dogecoin’s price has surged by 87%, proving just how powerful speculation and anticipation can be in the crypto world. Of course, as expected, this surge was short-lived.
Manipulation or Support?
Elon Musk's role in the price fluctuations of Dogecoin should not be underestimated. His tweets and actions always stir up a storm in the market. Musk is known for using his platform to generate hype around Dogecoin, often leading to short-term spikes in the coin’s value. However, these moves are always risky, especially when there's no solid proof of actual changes, like integrating Dogecoin into X Payments.
While Musk expresses his support for Dogecoin, his intentions aren't always crystal clear. Reports this year indicated that, despite discussions about adding Dogecoin to X's payment system, this wasn’t part of the initial plans. This uncertainty could be one of the reasons why Dogecoin's price is so volatile.
Overall Market Influence and Meme Coins
While Dogecoin reached impressive highs, a dip soon followed. By the end of the week, its price began to fall, dropping 12% in the last 24 hours. The reasons for this decline are tied to both the broader downturn in the cryptocurrency market and the inherent volatility of meme coins.
Dogecoin’s price also felt the ripple effects of other major cryptocurrencies. For instance, after Bitcoin's record-breaking rally, which briefly hit an all-time high of $99,645, the market cooled off. As a result, other meme coins, like XRP and Dogecoin, also experienced declines, though they weren’t the worst offenders. These short-lived surges and crashes are typical for volatile cryptocurrencies, and Dogecoin is no exception.
Moreover, despite the optimistic sentiment surrounding Dogecoin, the market correction following Bitcoin’s rise, along with the downturn in other major cryptocurrencies, weighed heavily on meme coins. Investors began cashing out their gains, and as a result, Dogecoin lost some of its value.
Musk is undoubtedly a key figure for Dogecoin, but his statements and actions don’t always paint a clear picture of the cryptocurrency’s future. Investors keeping an eye on Dogecoin should be prepared for high risks and unexpected turns.
Kataryna Habeliia
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice of this sort, HODL FM strongly recommends contacting a qualified industry professional.
