According to Elon Musk’s latest statements, the Twitter platform represents a “friendly place for Dogecoin,” where the crypto dog could roam free among various user posts and threads.
By now, it is well-known even to the uninitiated that the billionaire has a soft spot for DOGE having mentioned it several times since 2020, even manipulating the price of the cryptocurrency itself and having been sued as many as 3 times for insider trading.
However, this time, his statement hints that Twitter (now X) will probably be a place to experiment with some kind of integration with the memecoin.
Will this really be the case?
All the details below.
According to Elon Musk, Twitter is a friendly place for Dogecoin
Here we go again, Elon Musk has again published a post on Twitter where he praises Dogecoin. making public his admiration for the cryptocurrency.
On this occasion, there are no cryptic memes or enigmatic phrases so beloved by the multi-billionaire, who is heavily present on the social network, to keep the crypto community on its toes.
This time Elon Musk literally said that “Twitter is a friendly place for Dogecoin” hinting that there will be some kind of integration in the future.
Ever since the Tesla CEO decided to momentarily replace the famous Twitter bird with the logo of the most beloved cryptocurrency among shitcoiners, it was already clear that something was in the air.
Many HODLers of the memecoin hope that in the coming months Dogecoin will be used as an ecosystem currency to access the platform’s premium services or as a currency used as a monetization incentive to influencers.
DOGE is a relatively inexpensive cryptocurrency to use, with low transfer costs when compared to the king of the Bitcoin market, and faster transaction execution speeds than the well-known smart contract platform Ethereum.
It is still unclear whether, when and how this “partnership” will be carried out.
What we do know is that after Elon Musk’s latest post, the odds of such a decisive event for Twitter’s future have increased significantly.
By now Twitter has become for all intents and purposes the home of Dogecoin, all that is missing is the final consecration.
Price analysis of DOGE
Despite the fine words spent by Elon Musk on Twitter over the past two years , Dogecoin prices have suffered heavily from the bear market of the entire crypto sector losing billions of dollars in market capitalization.
Since August 2021, a period when a “lower high” was marked in the coin’s chart that heralded the beginning of its bearish phase, the asset has lost about 81% of its value.
Since prices closed the last week of November 2021 below the 50-period moving average, the bearish trend has definitely accelerated without giving room for bullish movements.
It was only in October 2022 that we could observe a pump week for DOGE, which rose 95% but lost the ground gained in the following months.
During 2023 the crypto tried to break the long downtrend by attacking the main resistance at $0.10 but failed to close even one week above it.
During the latest market dump with Bitcoin falling 7% in a single day, Elon Musk’s favorite cryptocurrency did not miss the roll call of losers, with 14.6% of its value evaporating in a short time.
For DOGE, the only bullish hope is to acquire the $0.08 and then the $0.10 to try to return to acceptable price levels from the previous all-time high at $0.739.
However, for now the bears are controlling the situation.
HODLers and fans of the crypto dog are just hoping for some extreme gesture from Elon Musk that will bring back the hype for memecoin.
As mentioned earlier, an integration of DOGE into Twitter would undoubtedly create the conditions for a remarkable pump of the coin, which could completely turn the tables on traders.
In any case, “hoping” for some event to occur on a market can be configured as gambling rather than investing.
Pouring large amounts of capital into altcoins with no intrinsic value or memecoins can be extremely detrimental to the performance of one’s portfolio, given and considering the high volatility and risks one is subjecting oneself to.
Surely you don’t want to end up like the unfortunate trader who turned $3 million into $50,000 by “investing” with wrong timing on DOGE.
Take care traders, always do your research and think about an asset allocation appropriate to your financial situation and risk exposure