Elon Musk Shills Dogecoin (DOGE), Pumps Another 50%

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In Brief
  • Dogecoin made significant gains following the latest pump tweet from Elon Musk.

  • Redditors have also contributed to the market frenzy.

  • Meanwhile, DOGE, which started as a joke, is beginning to attract business use-cases.

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Dogecoin (DOGE) is once again at the frontlines of massive market gains. The meme coins seem to be riding the wave of ceaseless promotion from Tesla CEO Elon Musk.

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Dogecoin appears to have sustained its bullish momentum over the week. After showing some signs of consolidation, market participants have now continued to build on that euphoria.

Another DOGE Tweet, Another Spike

On Feb 4, the meme coin made another 50% upswing shortly after the latest Musk tweet. Traders interpreted this as a buy signal, which cascaded into further buying. 

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In December, Musk tested the waters with a three-line tweet. And in January, it finally recorded substantial volatility, surging 250%. This drove the price from $0.007 to $0.07. 

The price action subsequently calmed down, lasting a few days. Dogecoin is currently exchanging hands around $0.045 and may be geared towards another push higher.

Redditors have also contributed immensely to dogecoin’s massive price action after traders moved their attention from GameStop (GME). r/WallStreetBet investors channeled their attention into the meme coin after trading activities were paused on Robinhood.

They achieved this by flooding Reddit with posts, suggesting that investors should quickly long positions on DOGE. Musk is not the only notable person that has contributed to the growing frenzy.

On Monday, Feb 1, former rockstar Gene Simmons announced that dogecoin was among his crypto holdings. He noted that this was not investment advice. Simmons also admitted to owning XRP and other cryptocurrencies.

The Meme Coin Moves into Business

Dogecoin, which may have started off as a joke, has turned into something of a business token. On Monday, Kronos Advanced Technologies, a publicly-traded company, announced that it would receive DOGE as payment.

Similarly, cryptocurrency derivatives exchange BitMEX has latched onto the bullish DOGE mania. It will be launching a perpetual swap contract for the cryptocurrency on Friday, Feb 5.

The listing may allow traders to load up on positions as the new swap will have up to 20x leverage. BitMEX has already created a testnet for the DOGE/USDT trading pair. It stated in the announcement that the contract would be visible from Jan. 4, 2021, at 4:00 UTC.

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Alo Kingsley is a content writer with 4+ years of experience in writing within the blockchain and cryptocurrency niche. He first discovered Bitcoin in 2016 and has been passionate since then about various ways Blockchain can help Africa and the world at large. He aims to give the crypto space a more geographically balanced narrative as it evolves.

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