Is Elon Musk’s Impact on Dogecoin (DOGE) Waning?

    Since 2021, Elon Musk's snide tweets and media statements have caused huge price swings for Dogecoin (DOGE). Now, the question is whether his influence on the DOGE price is diminishing.

    Elon Musk’s recent tweet mentioning Dogecoin (DOGE) did not cause any considerable price change, prompting an analysis of historical data. The goal is to determine if this is an unexpected event or if it is an early indication that Elon Musk’s sway over the DOGE community is waning.

    Elon Musk’s Influences on DOGE Price 

    Elon Musk’s impact on the price of Dogecoin (DOGE) can be traced back to 2021 when his cryptic Twitter posts and media statements seemed to have a direct influence on the DOGE price. Two notable instances are outlined below.

    Firstly, during his monologue on Saturday Night Live (SNL) on May 8, 2021, Elon Musk referred to cryptocurrency as a “hustle.” As illustrated in the chart below, this caused the DOGE price to plummet by approximately 52% from $0.69 to $0.31 before the end of the month.

    Source: CoinMarketCap

    More recently, on April 3, 2023, the DOGE logo suddenly appeared on Twitter’s homepage after Elon Musk acquired the social media giant. This led investors to speculate that Twitter might adopt DOGE for commercial transactions, as Elon had previously suggested. Within 24 hours, the DOGE price surged by 35% from $0.075 to $0.11.

    However, Elon Musk’s latest tweet mentioning Dogecoin on July 17 did not have a significant impact on the market. Given the historical precedents mentioned above, some DOGE investors are expressing skepticism.

    The Potential Future Influence of DOGE Miners

    At present, DOGE miners have control of approximately 3.2% of the total circulating supply. Therefore, as Elon Musk’s sway over DOGE price diminishes, traders may increasingly look to Dogecoin miners for trading signals. Recent data shows that miners have been bullish, steadily increasing their stockpile of DOGE over the course of two weeks in July.

    Source: IntoTheBlock

    Miner Reserves is a tool that tracks the wallet balances of known miners in real time. A notable increase in miner reserves, as observed during this period, indicates positive sentiment.

    Since miners hold a considerable portion of the circulating supply, their trading activity has a noticeable impact on price action. If strategic investors begin to follow the miners’ lead, DOGE could see gains in the upcoming weeks.

    DOGE Price Prediction

    Despite Elon Musk’s tweet having no significant impact, the bullish miners may step in and propel DOGE toward the $0.08 mark.

    However, before achieving that, the bulls need to overcome the resistance at the $0.070 range. In this zone, there are 270,800 investors who acquired 34.9 billion Dogecoin at an average price of $0.070. If they decide to sell, it could trigger a bearish reversal.

    Nevertheless, if the bulls manage to surpass this obstacle, there is a predicted target of $0.085 for DOGE.

    Source: IntoTheBlock

    On the other hand, if DOGE drops below $0.060, the bears could trigger an extended downward movement. However, there are 271,000 investors who purchased 4.88 billion Dogecoin at the lowest price of $0.059, and they may try to prevent the drop.

    While unlikely, if the support level fails to hold, DOGE could potentially decline toward $0.055.

    Disclaimer: This price analysis article is for informational purposes only and should not be considered financial or investment advice.

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