• Elon Musk tweeted about Dogecoin and Shiba Inu, causing their prices to rise
• According to a study by Blockchain Research Lab, Musk’s tweets have an average effect of 3% on crypto prices
• Dogecoin responded to the tweet with a 6.6% increase while Shiba Inu surged 2.5%
Elon Musk’s Impact on Dogecoin Price
Twitter CEO Elon Musk has recently been linked to several price surges of the meme cryptocurrency Dogecoin (Doge) following his tweets. After posting a humorous statement about “letting the doge out” and attaching an image of him “confessing” this act, there was an immediate 6.6 percent increase in the price of DOGE and a 2.5 percent surge for Shiba Inu coin (SHIB). This movement suggests that investors are reacting positively to Musk’s influence over cryptocurrencies.
Evidence from Blockchain Research Lab
According to a study conducted by Blockchain Research Lab, there is an average effect of 3 percent in crypto prices after any tweet posted by Elon Musk. The research also found that whenever there is an immediate spike in price, there will be another 45-minute price spike afterwards as well.
24-Hour Price Movement Analysis
The 24-hour chart analysis shows that the price of Dogecoin was within the ranges of $0.0832 and $0.0872 before retracing downwards after its initial surge due to Elon Musk’s tweet. This indicates that although it rose sharply at first, it was not able to test its key resistance level of $0.09 before starting its decline again.
Conclusion
It appears that Elon Musk has some control over investor behavior when it comes to cryptocurrencies like Dogecoin and Shiba Inu Coin (SHIB). While his recent post triggered a slight surge in both coins‘ prices, more evidence is needed in order to confirm this correlation for sure as well as determine whether or not he can continue influencing cryptos in such ways going forward.
Further Reading
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