The world’s richest man, Elon Musk, is yet again responsible for single-handedly pumping the price of Dogecoin up after a recent tweet he made. Elon Musk’s buying created a temporary bullish sentiment in the meme coin markets, but will this be short-lived?
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Elon Musk Tweet lifts Dogecoin Prices
The Dogecoin price has been tumbling since the end of 2021 and has further decreased after macroeconomic factors like growing inflation have caused the economic markets to fall. Doge has corrected from highs of $0.34 in August 2021 to $0.05 in June 2022. This is a more than 70% price correction.
However, Dogecoin has begun rallying since Elon Musk backed the token on his Twitter handle. On June 19th, the Tesla CEO took to Twitter to inform users that he would keep supporting Dogecoin.
Responding to a comment on his tweet, Musk also informed his followers that he is still buying Dogecoin. Musk’s positive remarks on Dogecoin were met with an instant price increase as users hurried to buy Dogecoin.
Doge rallied from $0.05 levels on June 18th to cross the $0.07 mark on June 27th 2022. This indicates a 40% price increase in 1 week following the tweet.
However, other meme coins have also rallied following the billionaire’s comments. The popular meme token, Shiba Inu, has experienced a price rally since Elon Musk shared he was buying Dogecoin.
Despite this rally, Doge is still 89% below all-time highs.
Shiba Inu has risen from the $0.000007842 mark on June 19th to trade at $0.00001177 as of June 26th 2022. This is a 50% price increase in only the last week.
Elon Musk Sued
While Elon Musk’s tweets are often met with a positive price rally for meme tokens, the owner of Tesla is being sued for $258 billion over an alleged crypto pyramid scheme. The plaintiff, Keith Johnson, accuses Musk of driving up the price of Dogecoin and then causing it to stumble soon afterwards.
Johnson seeks $86 billion in damages, representing the decline in Doge coin’s value since May 2021.
The lawsuit stems from the fact that Musk has continuously inflated the price of the popular meme coin by taking to Twitter and creating short-term rallies after supporting Doge. Musk and his lawyers are yet to comment on the lawsuit.
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