A New York judge recently dismissed a lawsuit that accused Elon Musk and Tesla of manipulating Dogecoin.
"No Reasonable Investor" would have relied on Musk's Tweets, the judge says.
The investors alleged that Musk's tweets inflated the memecoin's price by over 36,000% before the May 2021 crash.
Musk argued that his statements didn't break any laws and that DOGE's market cap still stands at $10 billion.
Dogecoin has remained relatively unchanged in price over the last 24 hours
Meanwhile, a descending wedge formation indicates that a breakout and price increase are incoming.
Elon Musk, the CEO of Tesla, has just been cleared in a high-profile lawsuit that accused them of manipulating the price of Dogecoin by publicly praising the memecoin and pumping prices.
This lawsuit, initiated by a group of Dogecoin investors, claimed that Musk's 2021 tweets about the cryptocurrency were part of an elaborate scheme to inflate and crash its value.
In the end, these investors summed up the damages to an alleged $86 billion, with a request for a triple that brought the total to $258 billion.
Here’s how things turned out.
The case ended up being dismissed on 29 August by Judge Alvin Hellerstein of the United States District Court for the Southern District of New York.
In his ruling, Hellerstein noted that the tweets and statements that Musk made about Dogecoin—including one where he claimed he might become the "official CEO of Dogecoin" and that he could place a "literal" Dogecoin on a rocket and fly it to the moon, simply didn’t make any sense.
Flying Dogecoin to the Moon
Source: Twitter
Instead, the defendants described these statements as "aspirational and puffery," and no reasonable investor would have taken them as sound financial advice.
The lawsuit was first filed in June 2022 and amended four times, with a final update last year to include accusations of insider trading.
The plaintiffs argued that Musk used his significant influence to manipulate the price of DOgecoin by over 36,000% in two years, only to allow the price to crash soon after.
CoinMarketCap data shows that the cryptocurrency (which currently trades at around $0.1 is down by around 86% from its $0.7376 all-time high from May 2021, three years ago.
The investors accused Musk of operating a "Dogecoin Pyramid Scheme" and that he made those tweets for personal or corporate gain.
The investors mentioned Musk’s Saturday Night Live appearance in May 2021 as an example. In it, Musk dressed as "a fictitious financial expert" and called Dogecoin "a hustle."
Within minutes of this video going live, the price of DOGE dropped more than 25% to $.50 from $.66.
A few days later, he told his X (then Twitter) followers that he was "working with Doge devs to improve system efficiency."
On 31 March this year, Musk requested that the lawsuit be dismissed, arguing that the accusations were "baseless and exaggerated."
They said, "There is nothing unlawful about tweeting words or funny pictures about a legitimate cryptocurrency that continues to hold a market cap of nearly $10 billion."
Dogecoin hasn't moved much since the lawsuit was dismissed.
Dogecoin’s current data
The cryptocurrency was up by a mere 0.5% in the 24 hours following the news and has declined by 20% over the past month.
Dogecoin’s descending wedge
According to the charts, Dogecoin might be in for better days, considering the descending wedge formation above and the incoming breakout.
The memecoin appears to have formed an ascending trendline within this formation and is entering a squeeze.
Dogecoin’s possible breakout
This means that if the bears do not pull a flash dump soon and break this short-term ascending trendline within the wedge, Dogecoin will soon have its day.
The memecoin should break out of this downward consolidation and re-target the $0.15 and then the $0.2 price levels once again.
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