The price of Dogecoin ( DOGE ) rallied by roughly 25% on Dec. 20 as Tesla CEO Elon Musk once again drew attention to the meme-inspired cryptocurrency. Elon Musk and his enthusiasm toward Dogecoin is a long-running meme. Every once in a while, Musk likes to tweet about Bitcoin ( BTC ) and the crypto market. When he does, the market reacts to it quite aggressively. Musk last tweeted about Dogecoin in July 2023, when he said he foresees a “Dogecoin standard future.” At the time, DOGE rallied 14%. The reason behind Dogecoin’s upsurge when Musk tweets is quite simple. As cryptocurrency researcher Hasu explains , “prices in this space are fueled by attention.” Hence, when there is a significant increase in attention, a low market cap cryptocurrency can increase rapidly. On Dec. 20, Musk started to tweet about Bitcoin, posting several tweets about the dominant cryptocurrency. Bitcoin is my safe wordIn the midst of it, Musk tweeted “One word: Doge,” which caused a frenzy on Twitter. Dogecoin started to trend on the platform, especially as Musk changed his bio to “Former CEO of Dogecoin.”According to data from CoinMarketCap, Dogecoin has a market capitalization of around $549 million. Compared to major cryptocurrencies, like Bitcoin, Ether ( ETH ) and top decentralized finance (DeFi) tokens, DOGE’s valuation is substantially lower. Moreover, because DOGE is only the 44th largest cryptocurrency in the world, its volume and liquidity are lower than the top cryptocurrencies. As such, when an influential figure, like Musk, talks about DOGE, the cryptocurrency often surges as the trading activity suddenly rises. In November, other major altcoins saw a similar trend. For instance, as Cointelegraph reported, XRP surged massively as Bitcoin began to rally towards $19,000. On Coinbase, it surpassed $0.90 while hitting around $0.75 on other major exchanges. Technical analysts and traders pinpoint that the upsurge of DOGE led to the start of altcoin cycles in the past. A pseudonymous trader known as “Crypto Capo” said :The probability of an altcoin season emerging remains high because Bitcoin faces a major resistance at $25,000 based on exchange orderbook data. The trader also noted that Bitcoin would likely hit $25,000 first, drop to $21,000 to reclaim support, and make its run towards $30,000. The trader said :If a scenario similar to this occurs, the largest beneficiary would likely be altcoins. Traders would seek for higher-risk plays to offset the declining volatility in the Bitcoin market. The combination of these factors suggests that the rally of DOGE could mark the start of a new altcoin cycle in the foreseeable future.
All data is taken from the source: https://cointelegraph.com/
Article Link: https://cointelegraph.com/news/why-dogecoin-immediately-surged-25-after-elon-musk-tweeted-about-it
#musk #coinbuyers #xrpcoinmarketcap #cryptocurrencynews #cryptocurrencyexchange #cryptonews #cryptoexchange
Related Post:
- Dogecoin update | Elon musk Dogecoin | elon musk |Elon musk Doge coin transaction|Elon musk dogecoin
- ELON MUSK JUST TWEETED ABOUT DOGECOIN!! ELON MUSK WILL SEND DOGECOIN TO $1 TODAY!!
- Dogecoin update | Elon musk Dogecoin | US Congressman buy dogecoin |Elon musk tweeter | Dogecoin $1
- DogeCoin is exploding – Elon Musk Tweeted #Dogecoin
- Elon Musk Just Tweeted Will DOGECOIN Breakout and Run or Slide Down Today? Dogecoin Price Prediction
- ? LIVE: Elon Musk Tweeted Dogecoin Right Now ?| Dogecoin Live
- ELON MUSK JUST TWEETED ABOUT DOGECOIN!! DOGECOIN WILL HIT $1 TODAY!!
- DOGECOIN MAJOR NEWS! ELON MUSK TWEETED THIS! Dogecoin Price Prediction SNL
- क्या Baby DogeCoin बनेगा अगला Shiba Inu ? Elon Musk Tweeted about Baby DogeCoin ! 10X Possible ??
- DOGECOIN ELON MUSK'S JUST TWEETED ! LATEST BREAKING NEWS NOW & PRICE UPDATES!! DOGECOIN TWEET!