TWTR - Dogecoin Is Pumping but Should You Get In On the Rally?
Now that Elon Musk has officially acquired Twitter (NYSE: TWTR) , the price of Dogecoin (CRYPTO: DOGE) is pumping. It was up 40% in just two days this week, due to the many indirect links between Twitter, Musk, and Dogecoin. As a result, Dogecoin backers think that the world's most popular meme coin is finally going to the moon. Across Twitter, they are posting their support of Musk and publicly speculating about the future value of their Dogecoin holdings.
However, those hoping for a sustained Dogecoin rally could be getting ahead of themselves. We've seen this same story before, and the highest that Dogecoin has ever gone in its nearly 10-year existence is $0.74. Right now, Dogecoin is still trading for just $0.085. Below are two reasons why I'm skeptical about a future long-term rally in Dogecoin.
The primary factor to consider is something the mainstream financial media has referred to as "The Elon Musk Effect." Quite simply, it's the fact that Musk has been a longtime supporter of Dogecoin for several years now, and that everything he says about Dogecoin seems to move the market. Musk has referred to himself as "The Dogefather" and has shared countless tweets about the future potential of Dogecoin. In one particularly memorable meme that he shared back in 2020, Musk suggested that Dogecoin might actually become the universal standard of the global financial system.
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Dogecoin Is Pumping, but Should You Get In On the Rally?