Dogecoin’s resurgence: Factors and forecasts

Over the past few weeks, the Dogeverse has been buzzing with excitement about Dogecoin’s upswing. On February 22, 2023, X (formerly Twitter) CEO Elon Musk ignited a frenzy when he posted a cryptic tweet that mentioned the cryptocurrency. He tweeted, “High time I confessed I let the Doge out.” This tweet caused Dogecoin’s value to spike by 0.1%, resulting in a 2.8% rise in one week. (The current Dogecoin price is $0.063 with a 24-hour trading volume of $243.66M).

This has been a recurring theme for Dogecoin, which has turned green when other projects are in the red this year. The most significant reaps happened after Musk, popularly named the Dogefather, changed Twitter’s logo to an image of the Shiba Inu dog, the symbol of Dogecoin, in April. The coin was trending within minutes, resulting in a 30% spike in Dogecoin price within 24 hours. This was interesting but not unsurprising, as Musk has been a big fan of the meme coin for years. 

Since 2020, Musk has often Tweeted in support of the project, which he shares with his 100 million+ followers. Predictably, the coin’s value would rally instantly each time he posts something positive about it. Even seemingly silly tweets from the Dogefather mentioning the token have caused significant price jumps, creating a ripple effect in the market.

This was seen in late July when Twitter rebranded to X, the everything app. When Musk tweeted a promo of the new X logo, Dogecoin surged 9% before the end of the day as crypto users speculated about the new changes and what they meant. Even Coinbase ran a piece on the latest development, noting that this move could broaden the use of Dogecoin and Bitcoin on the platform. Dogecoin rallied 19% that week, making it the best performer in the crypto world.

However, the relationship between Musk and Dogecoin took another interesting turn in June 2022 when the CEO and his companies, Tesla and SpaceX, faced a $258 billion lawsuit from Dogecoin investors. The lawsuit accused Musk of insider trading and manipulating the price of Dogecoin, costing investors billions of dollars. The investors felt that Musk’s tweets about the project were self-serving and not meant for the good of the community. They also accuse him of paying influencers to hype the project and using other publicity stunts, like his 2021 appearance on NBC’s “Saturday Night Live,” to trade profitably at the investors’ expense. Musk’s lawyers have termed the complaint a “fanciful work of fiction” and sought a dismissal. 

In addition to positive market sentiment, a strong and passionate community has also contributed to the Doge’s resurgence. With over five million wallet addresses, Dogecoin has a dedicated following that actively promotes and supports the cryptocurrency on platforms such as Twitter and Reddit. The Dogecoin Foundation, a non-profit relaunched in 2021, has also contributed to the public’s positivity toward the project.

Experts have varying opinions on Dogecoin’s future price. As one of the most trending coins in the last bull run, some people are confident it will pump again in the next bullish market, especially with the backing of influential figures like Elon Musk. Others believe meme coins are essentially dead and will never hit their previous all-time highs. Overall, the price might vary depending on broader market dynamics and investor sentiment in the coming months.