DOGE, SHIB, Twitter, and more: Analyzing Elon Musk’s effect on crypto
Elon Musk has played a significant role in the fluctuating fortunes of Dogecoin [DOGE]. His actions, or lack thereof, have always had an impact on the digital currency’s value. However, his recent move of replacing the Twitter bird logo with the Doge logo took things to another level. Interestingly, another meme-inspired cryptocurrency also experienced a surge in value around the same time as Dogecoin’s rise.
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According to Santiment, Dogecoin secured the seventh place on the top 10 hourly trend list. Notably, there was a significant increase in its social volume from 3 April.
Source: Santiment
3 April marked a peculiar occurrence where users globally observed a notable change to the iconic bird logo of Twitter. In its place was a dog logo that bore a striking resemblance to the Shiba Inu image used by Dogecoin. This sudden switch-up came as a surprise and generated an evident buzz that positively impacted the price of Dogecoin.
Taking a daily timeframe view of Dogecoin, it was evident that the logo change had a significant impact. On 3 April, DOGE’s value experienced a 21.49% surge, reaching a high of $0.10. However, at the time of writing, its price had decreased by close to 4%, trading at around $0.08.
Source: TradingView
Despite the observed drop, Dogecoin was still trading above its long and short Moving Averages, which had previously served as resistance zones. Moreover, the cryptocurrency remained in a bullish trend, as evidenced by its press time Relative Strength Index line, which remained above the 60 mark.
The recent developments surrounding Dogecoin had a ripple effect that extended beyond DOGE to other dog-themed meme tokens, Shiba Inu [SHIB]
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