In a move now nearly synonymous with his unpredictability, Tesla CEO Elon Musk once again captivated the Dogecoin (DOGE) community with a tweet reaffirming his support for the beloved meme coin.

On Monday, Musk took to X to share a playful jab at the mainstream media, referencing their acknowledgement of Dogecoin’s remarkable rise in the rankings. Notably, Musk’s tweet seemed to suggest that the increasing recognition of Dogecoin’s stature in the crypto market was a noteworthy milestone, a sentiment that resonated strongly with DOGE enthusiasts.

The cryptic tweet, which had over 47 million impressions at press time, elicited many positive replies, with DOGE enthusiasts interpreting it as a bullish signal for Dogecoin’s future. Notably, the billionaire’s penchant for generating buzz on social media platforms has often translated into significant price movements for cryptocurrencies, with Dogecoin no exception.

Before the peak of the 2021 crypto market, Musk was widely recognized as a key driver behind Dogecoin’s meteoric rise. In April 2021, his enigmatic tweet, declaring “Doge barking at the moon,” ignited an astonishing surge of over 1200% in Dogecoin’s price. And despite facing a sharp correction in the crypto market, Musk’s occasional references to DOGE, particularly regarding its acceptance as payment for certain services and products within his companies, have consistently spurred minor price pumps.

However, it is worth noting that the billionaire’s specific references to the price of DOGE have waned over the past year, particularly following a $258 billion lawsuit filed against him in April of last year, alleging his involvement in a pyramid scheme to support the cryptocurrency.

That said, the timing of Musk’s tweet coincided with a correction period for DOGE. Over the past week, the cryptocurrency has plunged by just over 20%, mirroring losses witnessed across the broader crypto market. However, the ongoing price recoil has generated renewed interest in DOGE, as evidenced by several major investors acquiring the cryptocurrency at current discounted prices.

Earlier on Tuesday, crypto transactions tracking service ‘Whale Alert’ highlighted a whale who scooped 150 million DOGE from Robinhood, propelling his stash to 175.9m DOGE. On Monday, another whale purchased 150 million doge.

From a technical standpoint, the asset’s price is presently hovering above a crucial support range between $0.14 and $0.16, a zone that could play a decisive role in its potential rebound in the upcoming days. Moreover, as per data from Intotheblock, this price range might offer substantial support, considering that 128,000 addresses recently acquired 6.5 billion DOGE.

At press time, DOGE was trading at $0.1533, reflecting a 4.27% drop over the past 24 hours.

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Filed under: Bitcoin - @ April 16, 2024 8:13 pm