The value of Dogecoin skyrocketed today with an exceptional increase of 30 % shortly after Elon Musk made the decision to use the memecoin symbol as the official logo for Twitter.
This change follows the request of the American billionaire to end the lawsuits to the tune of 258 billion dollars of which he is the subject because of his links with the Dogecoin.
After reaching a high point located at $0.1016the price of Dogecoin fell by around 8.8% and is now evolving around $0.091. The question now is whether this recent rise is a sign of positive momentum for all memecoins, or if it is just a pump that will remain confined to Dogecoin.
Twitter at the time of the Doge: a new logo for a new era?
The connection between the recent price development of Dogecoin and the Twitter logo change is indisputable. Even if it is most certainly a temporary decision, the fact of having replaced the iconic blue bird of the social network by the face of the dog used by the Dogecoin amounts to highlighting the cryptocurrency sector with the 360 million monthly users of the platform.
This reversal, added to Elon Musk’s last tweet including a meme that suggests that this logo change could be permanent, generated a large number of reactions on Twitter. However, a multitude of users seem to think that this move is just a simple April Fool’s joke with a few days delay.
Elon Musk, Twitter and the Dogecoin Phenomenon
Over the years, Elon Musk has demonstrated a penchant for influencing the prices of certain cryptocurrencies, especially with Dogecoin at the forefront. Elon Musk’s activity on Twitter has indeed confirmed his ability to greatly affect the value of the memecoin.
From his self-proclaimed “Dogefather” title to his endorsement of Dogecoin as the “people’s cryptocurrency”, the billionaire’s tweets have undeniably played a part in some of the swings that have hit the market.
In September 2022, the electric vehicle company Tesla (owned by Elon Musk) launched a collection of whistles inspired by the design of the Cybertruck, a futuristic-looking pickup truck, for 1,000 DOGE (or 60 dollars a month). ‘era). This unconventional pricing strategy has strengthened the bond between Musk and Dogecoin.
In addition, the collaboration between the developers of Dogecoin and Elon Musk has also made it possible to reduce carbon emissions by 25% of the token, proving that the entrepreneur’s involvement in the project goes beyond simple messages published on Twitter.
Nevertheless, this merger has raised concerns about possible market manipulation. The billionaire’s liability with some of his tweets, deemed impulsive, has already cost him $20 million following a fine imposed by the US Securities and Exchange Commission in 2018 following misleading statements about Tesla shares.
As Elon Musk continues to wield his influence in the crypto market, questions about the moral aspect of his actions are becoming increasingly concerning.
A legal minefield: Musk and the $258 billion lawsuit
In June 2022, Elon Musk’s escapades again put him in a sticky spot, as a Dogecoin-focused investor filed a lawsuit for $258 billion against Elon Musk, Tesla and SpaceX. The plaintiff, Keith Johnson, claims that Musk’s promotion of Dogecoin on Twitter was part of a pyramid scheme designed to inflate the value of the token before letting it crash.
The American billionaire’s lawyers reacted to these accusations by saying that sharing humorous images related to a cryptocurrency on Twitter could not constitute a fraudulent act. For this reason, Elon Musk filed a request with a judge last week to have the complaint quashed.
As celebrity endorsements continue to influence the crypto market, the potential for other memecoins like Love Hate Inu to experience a price hike remains particularly high.
Dogecoin Technical Indicators Point to Further Upside
As mentioned earlier, Dogecoin (DOGE) is experiencing a bullish trend during the day, with the bullish trend pulling the price of the token up to $0.10500. At the time of writing this article, we are nevertheless observing a certain stabilization which could be the sign of a reversal of the dynamic.
The 20-day exponential moving average (EMA) of Dogecoin is currently positioned at $0.07713, while the 50-day and 100-day EMA are at $0.07776 and $0.07941 respectively. The convergence of these EMAs suggests that the price of Dogecoin is stabilizing, but that further upside remains possible.
The RSI, an indicator that measures the speed and variation of price movements, is now pegged at 67.15 for Dogecoin, which represents a significant increase compared to the previous day’s RSI, positioned at 55.15. This gap indicates increased selling pressure and that market sentiment is definitely bullish.
Taken as a whole, the technical indicators for Dogecoin suggest that the upside may continue in the days ahead. Nevertheless, due to the particular nature of this price movement, very strongly linked to Twitter’s new marketing strategy, it remains quite difficult to predict with certainty the future evolution of the price of Dogecoin.
Love Hate Inu: An alternative to Dogecoin with real utility
Investors looking for a memecoin that could benefit from Dogecoin’s latest price movements would have every reason to look to Love Hate Inu, due to the project’s unique characteristics.
Love Hate Inu managed to raise more than $2.67 million in the space of just a few weeks as part of its presale for its future platform which is inspired by the aesthetics of memecoins while focusing on the vote-to-earn (V2E) system. Love Hate Inu’s ambition is to revolutionize the online survey industry by introducing a reward mechanism based on blockchain technologies, like play-to-earn but for paid surveys.
Usually, memecoins mostly rely on the hype and excitement they are able to generate on social media through their respective communities. As a result, many such projects have failed to survive the test of time.
Love Hate Inu aims to break this trend by becoming the first memecoin to offer a real use case in addition to taking advantage of the high popularity and viral aspect of memecoins. With its design inspired by the aesthetics of Dogecoin and Shiba Inu, this new project plans to enter the survey sector, estimated at $3.2 billionin order to correct some of its recurring problems.
Deployed on the Ethereum blockchain, this memecoin offers its users the possibility to express their opinions on a wide range of subjects, including politics, the world of entertainment as well as various social issues. All votes will be recorded on the blockchain, ensuring transparent and authentic results while allowing users to receive compensation in the form of tokens for their participation.