In 2021 and 2022, every move made by Elon Musk had serious consequences on the price of DOGE. The sale process of Twitter seemed like yesterday, the cancellation of the deal, and then reaching an agreement again. All of these were developments that DOGE investors followed with great excitement. So, what happened now?
This week, Elon Musk’s mention of Dogecoin did not trigger a significant price movement. Historical data analysis examines whether this is a black swan event or early signs that Elon Musk’s influence on the DOGE community has diminished. Elon Musk’s influence on the price of Dogecoin (DOGE) dates back to 2021, when a series of mocking Twitter posts and media statements caused a crazy surge in DOGE price. Elon Musk had repeatedly skyrocketed the price of DOGE in a single candle.
Elon Musk’s influence on the price of Dogecoin (DOGE) extends back to 2021 when a series of cryptic Twitter posts and media statements directly affected the DOGE price. The two most notable examples are shown below.
Firstly, on May 8, 2021, during his monologue on Saturday Night Live (SNL), Elon Musk referred to the cryptocurrency as a “hustle.” The chart below shows how the DOGE price dropped from $0.69 to approximately $0.31, a decrease of about 52%, before the end of the month.
Most investors still remember those days. Hours before the SNL show, investors were discussing when the price would reach $1. The meme coin king came close to its exciting target of $1 for the first time on that date.
More recently, on April 3, 2023, after Elon Musk facilitated the acquisition of the social media giant, the DOGE logo suddenly appeared on Twitter’s homepage. Investors quickly took action under the assumption that Twitter could potentially adopt DOGE for commercial transactions, as previously suggested by Elon. Within 24 hours, the DOGE price increased by 35% from $0.075 to $0.11.
Or at least for Elon Musk? However, Elon Musk’s latest tweet referencing Dogecoin on July 17 did not significantly affect the market. Investors are getting bored and now want to take less risk in the market.
Currently, DOGE miners control approximately 3.2% of the total circulating DOGE. As Elon Musk’s influence on the DOGE price diminishes, strategic investors may turn to the sensitivity of Dogecoin miners for trading tips. It is particularly noteworthy that miners have shown an upward trend in recent weeks and increased their reserves. As seen below, between July 6 and July 18, DOGE miners added 50 million coins to their wallets.
Miner Reserves track real-time changes in wallet balances belonging to recognized miners. When miners increase their reserves, as shown above, it indicates that they are in a positive trend.
As Elon Musk loses his power, the direction of miners sends signals that could still give hope to the DOGE community in the medium and long term. In the short term, a possible upward movement could push the price to $0.08.