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Doge Coin Rallies Further Than Musk Effect, Will it Play a Part in Payment System for ‘X’?

Published July 25, 2023 6:16 PM
Omar Elorfaly
Published July 25, 2023 6:16 PM

Key Takeaways

  • Is X Corp going to be the home of Doge?
  • Doge Futures investors lose money betting against the memecoin
  • An analysis recommends staying wary of Doge fluctuations

Ever since the world’s richest person, Elon Musk, rebranded Twitter to X and then added the Dogecoin symbol ‘Ð’ to his profile pictures, the crypto market has been rushing to catch the resulting surge. 

Crypto tracking tools show that investors who bet on Doge shorting lost 10% on their investments as the memecoin temporarily surges. 

However, analysts advise investors to stay wary of the coin’s sudden surge as its future seems unclear. 

Elon Causes Doge To Surge

It’s no secret that Tesla and SpaceX CEO Elon Musk is a big fan of Dogecoin. Earlier this year, after taking over Twitter, Elon temporarily changed the Twitter logo to the Dogecoin logo, causing the memecoin to surge in price. The same incident caused legal parties to file a lawsuit against him, claiming market manipulation.

Now, Elon announced Twitter’s rebranding to X, adding the social media platform to his X Corp, which includes Tesla and SpaceX.

Following the announcement, Musk added the platform’s new symbol 𝕏 alongside Ð, Dogecoin’s symbol in the location section on his profile.

As a result, Coingecko  shows that Dogecoin rose in value by almost 10% within 24 hours. Reports  also show that investors who bet against the memecoin lost millions of dollars on their investments. 

However, there’s more to the story: Elon has been famous for helping certain crypto tokens rise in value temporarily before they sink to the ground. 

A prime example of the incident is when Elon purchased $1.5 billion in Bitcoin in 2021, causing the token to surge in price, while promoting the potential of Bitcoin as a payment solution, including for Tesla’s products.

Mere months later, Musk and Tesla sold the majority of their Bitcoin pile, resulting in a major market dump that sent the token’s value to a new low. The tech CEO even started talking about the environmental impact of using Bitcoin to justify his sudden change of mind.

Skepticism Surrounding Doge

CCN analysts cite several reasons why investors should be wary of investing in Dogecoin following Musk’s recent action around the coin.

  • Dogecoin’s price has already reached its “range median level and is now making an interaction that can end as a rejection. It can also break the level but would, in that case, still be uncertain to say how much upside potential it has since a large spike can end as a wick – ultimately leading the price back below $0.0747 (range median level). 
  • The memecoin has been inconsistent as of late. The latest Musk-related rise has been its first since June 10th. Analytics indicate that if the price started a bullish uptrend, the wave structure would have been impulsive and clearly formed higher highs and lows.
  • The latest rise doesn’t really count. Dogecoin was already recovering from a recent slump of $0.07, rose to $0.078, then came back down to $0.07.
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