Is Elon Musk Losing Influence on the Price of Dogecoin (DOGE)?

Key Insights

• Elon Musk has been influencing Dogecoin price since 2021, when a series of Twitter posts caused the price of DOGE to skyrocket.
• This week, Elon Musk Dogecoin tweet did not have a similar effect on the meme coin’s price in the last 24 hours.
• Most recently, DOGE surged 35% in April 2023 when Twitter briefly changed its logo to Dogecoin.

Elon Musk has been influencing the price of Dogecoin (DOGE) since 2021. It was then that a series of malicious Twitter posts and statements in the media caused the Dogecoin value to skyrocket.

Is the billionaire losing influence on the price of Dogecoin?

Elon Musk and his impact on the Dogecoin price – a short story

The impact of Elon Musk on the price of Dogecoin dates back to 2021. At the time, a series of cryptic tweets and media coverage seemed to have a direct impact on DOGE’s price.

The two most significant cases are illustrated below.

First, during his commentary on Saturday Night Live (SNL) on May 8, 2021, Elon Musk referred to the cryptocurrency as a “hustle” during his famous monologue.

The chart below shows how the Dogecoin value dropped almost 52% from $0.69 to $0.31 before the end of the month.

Recently, on April 3, 2023, the DOGE logo suddenly replaced Twitter’s famous blue bird after Elon Musk’s takeover of the social media giant.

Investors quickly made the assumption that Twitter could potentially introduce DOGE into commercial transactions, as Elon previously suggested. Within 24 hours, the price of DOGE increased by 35% from $0.075 to $0.11.

However, Elon Musk’s latest Dogecoin tweet on July 17 failed to move the market significantly. Considering the historical events presented above, this caused quite a surprise for many DOGE investors.

Dogecoin miners may have more impact in the future

Currently, Dogecoin miners control approximately 3.2% of all DOGE in circulation. As such, as Elon Musk’s influence on the DOGE price begins to wane, strategic investors may turn to the sentiment of Dogecoin miners for trading guidance.

It is worth noting that in recent weeks miners have taken a bullish stance and accumulated their reserves.

Between July 6 and July 18, they added 50 million coins to their supply, as seen below.

Miner reserves track changes in portfolio balances owned by approved miners in real time. When they increase reserves as seen above, it means they are taking a positive disposition.

When miners own a significant portion of the circulating supply, their trading activity significantly affects price action. If strategic investors start mirroring their miners’ trades, DOGE could increase in the coming weeks.

Dogecoin price prediction: current target at $0.085

At the time of writing, Dogecoin price was trading at $0.06, down 0.19% in the last 24 hours.

Will Dogecoin go back up?

Even though Elon Musk didn’t move the market this time around, bullish miners could catch up and push the DOGE towards $0.08.

However, the bulls need to break the selling wall around $0.070 first. In this zone, 270,800 investors purchased 34.9 billion DOGE at an average price of $0.070. If they decide to sell, they can trigger a downward move.

However, if the bulls manage to clear this hurdle, DOGE could move towards $0.85 as predicted.

Still, the bears could force a prolonged decline if the DOGE falls below $0.60. However, the 271,000 investors who bought the 4.88 billion DOGE at the minimum price of $0.59 will try to prevent this from happening.

 Read also: Buy Dogecoin with PayPal

While unlikely, Dogecoin price could still fall towards $0.55 if this support level is not maintained.