Elon Musk continues to be one of the biggest factors affecting the price of Dogecoin, as the CEO of Twitter proved again today. Musk made an obvious joke by writing, “It’s about time I admit I let go of Doge.” He also shared a picture with an inscription.
In the written script, the image reads, “It’s me, I let the dog go.” Shortly after, the price of Dogecoin responded to Musk’s tweet with a 6.6% increase. Shiba Inu saw a modest price appreciation of 2.5%, likely because Musk referred to dogs in the plural.
It’s high time I admitted I let the Doge out pic.twitter.com/TAi4p1khAd
– Elon Musk (@elonmusk) February 22, 2023
What Musk’s tweet means or whether it has a deeper meaning is anyone’s guess, as always. Rumors were immediately revived from the Dogecoin community that Musk stated that DOGE would be merged on Twitter.
However, that theory seems unlikely. In a follow-up tweet, Musk wrote, “Check the facts @CommunityNotes.”
Interestingly, a few hours before Musk’s tweet, the Twitter account Community Notes sent a message stating that starting today, users will receive notifications when community notes are displayed about tweets that have been answered, liked or retweeted.
“It helps give people extra context that they might otherwise have missed,” the announcement continued. Therefore, it seems that Musk’s latest Dogecoin tweet was just to draw attention to Twitter’s new feature, while again showing his love for DOGE.
As for the price behavior of DOGE, a recent example from Elon Musk’s tweet is emblematic. In the past, almost every tweet from Elon Musk caused a sudden pump in the price of Dogecoin.
There is even research on the “Elon Musk” effect on Dogecoin. The result of an older Blockchain Research Lab study is that there was a price jump of about three percent on average for all 47 events after Musk tweeted about DOGE.
The study found that Dogecoin typically sees an immediate and massive price spike, followed by another 45-minute price spike. After that, the return falls back to the level of the first price spike. This is exactly what we are seeing this time as well.
Dogecoin Price Remains In Trading Range
However, a look at the 1-hour chart shows that the rise in DOGE price is insignificant. Dogecoin price is currently in the range of $0.08 to $0.09.
The rally triggered by Elon Musk has ended in the middle of the range, before the key resistance at $0.09 can even be tested. At the time of writing, DOGE is trading at $0.0871 and has seen the first retracement of an impulsive move.
Option image from Marca, Chart from TradingView.com