The volatile meme token Dogecoin is currently up 20% on the month already, following the announcement on Monday April 4 that Elon Musk had invested in Twitter shares. Is the DOGE bull running?
The multi-billionaire Tesla CEO, known for his support of the meme coin, often tweeting about $DOGE, now owns 9.2% of Twitter shares.
Investing Elon Musk on Twitter
Musk’s assets were revealed in a SEC.gov filingwhich states:
Amount beneficially owned: 73,486,938 shares consisting of common stock held by Elon Musk Revocable Trust of which Elon Musk is the sole trustee.
Based on the current Twitter stock price (ticker TWTR), Elon’s investment in Twitter is worth just under $3 billion.
In January, Twitter’s Elon Musk confirmed on his personal Twitter account (@elonmusk) that Tesla would accept Dogecoin as a form of payment, at least for merchandise.
Tesla merchandise purchasable with Dogecoin
— Elon Musk (@elonmusk) January 14, 2022
Musk has also tweeted his support for Shiba Inu in the past, which is also green on the month, up 5%. He also named his own pet dog, of the Shiba Inu breed, “Floki”, a reference to another Floki Inu meme piece.
He has been a cryptocurrency enthusiast and investor for a few years, telling Forbes in 2021 ‘I own Bitcoin, Tesla owns Bitcoin, SpaceX owns Bitcoin.’ Later that year, Musk became the richest person in the world, surpassing Jeff Bezos on Forbes’ rich list.
He tweeted once – ‘Having bitcoin is simply a less dumb form of liquidity than cash. When fiat currency has negative real interest, only a fool wouldn’t look elsewhere.’
Last week, he shared a Dogecoin video in a Twitter chat about Bitcoin mining.
From Monday’s low of $0.13 to today’s intraday high of $0.18, Dogecoin has pumped 38.5% this week.
It is currently trading at just under $0.17, a 20% gain from its April monthly open of around $0.14.
Will Dogecoin Rise in 2022?
Dogecoin has been on a downtrend with few rebounds since hitting an all-time high of $0.74 in May 2021. Almost a year later, is its bear market over and a new bullish cycle is it about to start?
DOGE price has a habit of retracing every 10-30% pump resulting from an Elon Musk tweet, to the point where Elon is accused of pumping and throwing the coin meme, alongside Bitcoin.
It set a low of $0.10 in January 2022. Is this news enough to trigger a new bull run? Will Dogecoin rise in 2022 or will it ever reach $1? That remains to be seen.
If so, it might just be because DOGE has already dropped 86% of his ATH (now 77% after this new news from Elon Musk). Technical analysis often trumps any Twitter account, even Elon’s.
Is Dogecoin a good investment?
Although it might seem like a cheap crypto at $0.17 per coin, Dogecoin is already the 12th largest cryptocurrency by market capitalization according to Coinmarketcap.com.
Dogecoin’s market capitalization is $22 billion, slightly larger than Polkadot, and considerably more than MATIC, Do Kwon’s TerraUSD, or Crypto.com’s native coin CRO. All of these actually have use cases, unlike the DOGE meme token which started out as a joke.
To move up the ladder, it would need to overtake Avalanche, XRP, Cardano, LUNA, Solana, and other major cryptos.
Altcoins are easier to pump when they have a low market cap, and retail investors who bought the top of Dogecoin in early 2021 and Shiba Inu in late 2021 (which also corrected 81% ATH , now 70%) might be reluctant to buy back into.
We recommend that you only allocate a portion of your portfolio to the same speculative coins. Dogecoin is listed on eToro which is a social trading platform that allows you to copy professional investors and discuss with others whether buying Dogecoin is worth it at each price level.
Simply investing in Bitcoin could also provide a high ROI at this point as Elon Musk will have a say in the direction and direction of Twitter. This could mean more cryptocurrency integration on the platform. Twitter used to be a vehicle for spreading crypto awareness, as former CEO Jack Dorsey was a Bitcoin and DeFi investor.
Your capital is in danger.