Elon Musk has been a prominent figure in the period from 2020 to 2021 as an active supporter of Dogecoin (DOGE). The price movements of the meme coin Dogecoin directly responded to Musk’s social media posts and were generally positive. Especially his humorous posts on Twitter (now X) and his references to Dogecoin were rapidly pushing the price of this popular cryptocurrency upwards. However, as we approach the end of 2023, this impressive momentum seems to have slowed down.
Elon Musk and meme coin relationship
On September 7, Elon Musk shared an AI-generated image on the X platform that included the phrase “DOGE.” At first glance, the post appeared to be a reference to Dogecoin, but it was actually an acronym for the Department of Government Efficiency, a title given to Musk by former US President Donald Trump. Donald Trump has overtaken Kamala Harris in the presidential race, and a potential victory could usher in a period in which he and Musk will collaborate.
However, the expected increase in Dogecoin price did not occur after this post. On the contrary, despite other increases in the cryptocurrency market, Dogecoin continued to lose value. This may indicate that Dogecoin no longer reacts as quickly and positively to Musk’s posts as before.
Dogecoin price analysis: What to expect for the cryptocurrency?
Even two hours after Elon Musk’s last post, Dogecoin failed to perform as expected. On the contrary, while other cryptocurrencies rose, DOGE continued to trade at $0.09382, showing a decrease of 3.31%. This indicates an unusual picture in the cryptocurrency market, as Musk’s posts were considered one of the biggest factors directly affecting the price of Dogecoin in the past.
Dogecoin is lagging behind despite the recovery in the overall market. For example, in CoinMarketCap’s “Top Gainers” list, cryptocurrencies such as Starknet (STRK), Sui Network (SUI), Optimism (OP), JasmyCoin (JASMY), and Uniswap (UNI) have gained between 3.39% and 11.66%. However, Dogecoin has failed to keep up with this uptrend and has disappointed investors. This chart may indicate that Elon Musk’s influence on Dogecoin is decreasing. Previously, every tweet by Musk directly affected the price of DOGE, but now it seems that this influence has weakened significantly.
Elon Musk faces manipulation lawsuit
Meanwhile Cryptocoin.com As we reported, Elon Musk and Tesla have also been on the agenda with a lawsuit filed alleging manipulation of the price of Dogecoin. Investors claimed in a lawsuit filed in June 2022 that Musk had lost $258 billion by manipulating the price of Dogecoin. The court found these claims invalid and dismissed the lawsuit. Judge Alvin Hellerstein, who dismissed the lawsuit, stated that Musk’s statements that led to him being accused of manipulation should not be taken seriously. The judge said, “These statements are merely targeting and exaggeration, and are not based on reality or falsifiable. A rational investor would not trade based on such statements.”
In this case, investors claimed that Musk caused them serious harm by increasing the price of Dogecoin by 36,000%, but the court did not take these claims into consideration. While Dogecoin rose based on Musk’s social media posts, there are signs that this effect may have diminished these days.
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