Elon Musk's influence over the crypto market appears to be strong as ever, as one of the top ten cryptocurrencies has reacted to news concerning the tech entrepreneur and celebrity billionaire.
Dogecoin, famous for flash pumps after endorsement from Musk, has done it gain. The cryptocurrency pumped a whole 8%, following news that Musk had finally agreed to buy Twitter on the deal's original terms.
According to BloomBerg, Elon Musk's attorneys sent a letter to Twitter in which Musk proposed to buy the social media company for the originally agreed price of $54.2 per share.
Less than a few minutes after the news broke, the price of DOGE began its ascent to the upside, gaining a whole 8%, according to CoinGecko. Twitter's stock reacted as well, pumping about 18% soon after.
It even appears that the pump isn't over yet, as Dogecoin has added another 6.7% pump yesterday, making a $0.007 increase in price over the last two days alone.
Dogecoin is worth $0.064 at the time of writing.
The relationship between the price action of Dogecoin and Elon Musk is a powerful one. Ever since 2021, the billionaire has garnered strong interest in the memecoin from the public via several playful tweets. Musk's influence caused a total price increase of about 1100% in 2021 alone.
The price of Dogecoin almost hit the 1% mark and was close to $0.8 before the crypto crash of May 2021. Ironically, the same crypto crash that dropped the price of bitcoin and several other cryptocurrencies by more than 50% overnight came after a single tweet from this same man.
In the charts, Dogecoin appears to be consolidating and is currently about to retest the $0.063 level. Before a breakdown or a possible bounce and rebound to the upside.
From June 2021 through 2022, the price of dogecoin has crashed 90% from its all-time high.
Months ago, the deal between the Twitter board and Elon Musk appeared almost complete.
When Musk originally proposed to buy the social media giant in April 2022, its management board invoked a so-called poison-pill strategy to prevent Musk from taking over the company by a hostile takeover.
According to a Reddit thread, many believe that Elon Musk may be planning to move Twitter to the blockchain and remove all bots while finding a way to integrate Dogecoin into the company's inner workings.
If the deal were finalized, it might prove to be a major boost for the price of Dogecoin. Recall that Musk had mentioned earlier that he might add Dogecoin as part of a payment system on the social media platform.
Based on this, it isn't hard to see why everyone is stocking up on Dogecoin in an attempt to catch any pumps that may occur over the next few months.
Disclaimer: The author's comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)