As is well known, in 2021, the price of the Dogecoin crypto rose 23,000%. The coin’s famous and so far undefeated rally, as with almost everything else about it, was triggered by billionaire entrepreneur and now Twitter CEO Elon Musk.
Now, the question from the community fond of the memecoin is another, and that is whether history can repeat itself for the price of DOGE this year as well. Let’s look at all the details below.
Summary
Focus on the price of the Dogecoin crypto: will the 2021 rally be repeated?
At present, DOGE is trading at $0.0942, up about 94% from last year’s low. However, despite its major rebound, its price is still 88% below its all-time high of $0.76, set in May 2021.
Hence, the DOGE/USD pair remains far from establishing a decisive bullish reversal on a longer time frame. As anticipated above, the price of the Dogecoin crypto rose more than 23,000% in 2021 primarily due to Elon Musk’s support.
Interesting fact is that DOGE peaked after Twitter’s new CEO called it a “hustle” during his appearance on Saturday Night Live in May 2021.
However, between 2022 and 2023, the price of DOGE entered a long prolonged bearish cycle due to both the Fed’s stringent regulations and the collapse of several major crypto companies such as Terra (LUNA), Three Arrow Capital, and FTX.
It is worth noting that despite Dogecoin’s downward trend, October 2022 still saw a 100% price rebound for the coin. Of course, the rebound coincided with Musk’s acquisition of Twitter, as enthusiasts hoped that DOGE would become the official payment token of the social media platform.
However, to this day Musk has not added a DOGE payment option on Twitter. A major contributing factor was the replacement earlier this month, if only briefly, of the platform’s historic bluebird logo with Dogecoin’s official mascot, the Shiba Inu meme.
Thanks to this move by Musk, DOGE rose as much as 40% in the news and beyond. Hence, it is easy to think that speculation could help Dogecoin sustain its gains. Even if the all-time high price is still 700% away.
One of Musk’s many moves in favor of Dogecoin: Twitter’s momentary logo change
As anticipated above, on 3 April Twitter, thus Elon Musk, changed the social media icon to that of the symbol of the popular token meme Dogecoin. As a result, as was to be expected, Dogecoin was up sharply immediately after the news.
Specifically, its price was up more than 22% in one hour to $0.09784. Not satisfied, shortly after the icon change, the CEO of Twitter and Tesla tweeted the following meme, which seemed to indicate the fact that the change would last for a while:
In any case, this was not the first move by Elon Musk that moved, one way or another, the price of the crypto Dogecoin. Indeed, several market studies in the past have suggested that Musk’s tweets about DOGE tend to drive up its price.
Throughout 2021, Musk promoted the cryptocurrency with slogans such as “Dogecoin is the people’s cryptocurrency” and proclaimed himself “Dogefather.” Last year, Tesla launched a new series of ‘whistles’ inspired by the Cybertruck series.
Specifically, each whistle was priced at 1,000 DOGE. In addition, we see that fellow American billionaire Mark Cuban also praised Dogecoin, claiming that it could be used to solve the Twitter spam problem.
The lawsuit against Musk, accused of promoting the price of the Dogecoin crypto
Not long ago, investor Keith Johnson accused Musk of scamming and manipulating the price of the cryptocurrency Dogecoin by launching a $258 billion lawsuit. According to Johnson, the Twitter CEO allegedly pushed up the price of the Dogecoin cryptocurrency by promoting it for his “profit and amusement.”
In addition, he accuses him of taking advantage of an exploitative pyramid scheme that allegedly allowed manipulation of the cryptocurrency’s value. As a result, Johnson demanded $258 billion from Musk and the Tesla and Space X companies, including $86 billion quantified as losses related to the year 2019 and $172 billion in damages.
The documents filed with the court as a result of the complaint filed by Keith Johnson, stated the following:
“The defendants falsely claim that Dogecoin represents a legitimate investment, when in fact it has no value, and does not pay any interest or dividends: it is simply a scam.”
As expected, Elon Musk was not long in showing his defense. Specifically, earlier this month, Musk and his lawyers asked a US judge to dismiss the lawsuit.
In fact, Musk’s lawyers explained that his support for Dogecoin on social media, which included comments such as “Dogecoin Rulz” and “no highs, no lows, only Doge,” was too vague to warrant a fraud complaint. Lawyers defending the Twitter CEO stated the following:
“There is nothing unlawful about tweeting words of support for, or funny pictures about, a legitimate cryptocurrency that continues to hold a market cap of nearly $10 billion.”
In conclusion, Musk’s lawyers characterized the statements about Dogecoin as “harmless and often silly tweets” to convince the judge to dismiss the multibillion-dollar lawsuit.
