Volatile meme token Dogecoin is currently up 20% on the month already, following news on Monday 4th April that Elon Musk had invested in Twitter stocks. Is the DOGE bull run back on?
The multi-billionaire Tesla CEO who is known for his support of the meme coin, often tweeting about $DOGE, now owns 9.2% of the shares in Twitter.
Elon Musk Twitter Investment
Musk’s holdings were revealed in an SEC.gov filing, which states:
Amount beneficially owned: 73,486,938 shares consisting of shares of Common Stock held by the Elon Musk Revocable Trust for which Elon Musk is the sole Trustee.
Based on the current price of Twitter stock (ticker TWTR) Elon’s investment in Twitter is worth just under $3 billion.
In January Twitter Elon Musk confirmed on his personal Twitter account (@elonmusk) that Tesla would be accepting Dogecoin as a form of payment, at least for merchandise.
Tesla merch buyable with Dogecoin
— Elon Musk (@elonmusk) January 14, 2022
Musk has also tweeted 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 meme coin Floki Inu.
He’s been a cryptocurrency enthusiast and investor for some 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, overtaking Jeff Bezos on the Forbes rich list.
He once tweeted – ‘Having some 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 conversation about Bitcoin mining.
Dogecoin Pumps
From the Monday low of $0.13 to today’s intraday high of $0.18, Dogecoin pumped 38.5% this week.
It’s currently trading at just under $0.17, putting in a gain of 20% relative to its April monthly open, which was around $0.14.
Will Dogecoin go up in 2022?
Dogecoin has been in a downtrend with few relief rallies since it’s all-time high of $0.74 in May 2021. Almost a year on, is its bear market over and a new bull cycle about to begin?
The DOGE price has had a habit of retracing every 10-30% pump that resulted from an Elon Musk tweet, to the point of Elon being accused of pumping and dumping the meme coin, alongside Bitcoin.
It set a low of $0.10 in January 2022. Is this news enough to trigger a new bull run? Will Dogecoin go up in 2022 or ever reach $1? That remains to be seen.
If it does, it may simply be because DOGE already went down 86% from its ATH (now 77% after this new Elon Musk news). Technical analysis often trumps any Twitter account, even Elon’s.
Is Dogecoin a Good Investment?
While it may seem 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 cap is $22 billion, slightly ahead of Polkadot, and considerably more than MATIC, Do Kwon’s TerraUSD, or CRO the native coin of Crypto.com. All those actually have use cases, unlike meme token DOGE which started as a joke.
In order to climb up the ranks it would have to overtake Avalanche, XRP, Cardano, LUNA, Solana and other major cryptos.
Altcoins are easier to pump when they have a low marketcap, and the retail investors that bought the top of Dogecoin in early 2021 and Shiba Inu in late 2021 (which also corrected 81% from ATH, now 70%) might be reluctant to buy back in.
We recommend only allocating part of your portfolio to speculative meme coins. Dogecoin is listed on eToro which is a social trading platform that allows you to copytrade professional investors, and discuss with others whether buying Dogecoin is worthwhile at each price level.
Elon Musk on the Board of Twitter
Simply investing in Bitcoin could also provide a high ROI at this point as Elon Musk will have a say in the leadership and direction of Twitter. That could mean more integration of cryptocurrency on the platform. Twitter has a history of being a vehicle for raising awareness of crypto, as former CEO Jack Dorsey was a Bitcoin and DeFi investor.
Musk will have a seat on the board. Parag Agrawal – Twitter’s new CEO – tweeted the following:
‘I’m excited to share that we’re appointing @elonmusk to our board. . . Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our board. He’s both a passionate believer and intense critic of the service which is exactly what we need on @Twitter, and in the boardroom, to make us stronger in the long-term. Welcome Elon!’
Your capital is at risk.
