DOGE bounces back after Musk says it ‘has potential as a currency’

KEY POINTS

  • Dogecoin has seen a price reversal since Thursday night
  • The spike in price could be due to Musk’s latest tweet
  • Dogecoin is trading up 20.04% at $0.09162

Dogecoin traded in the red zone in recent days, but its savior, Elon Musk, once again helped its price rise and trade in the green zone simply by tweeting about it.

Musk has once again redeemed Dogecoin with a short tweet: “It has potential as a currency.” The comment was in response to a tweet from Billy Markus, the co-creator of Dogecoin who uses the Twitter handle Shibetoshi Nakamoto, saying: “the reason [I] likes[s] dogecoin is because it knows it’s stupid,” adding, “I like that something stupid can also have utility and be successful.”

Dogecoin is an ERC-20 token created as a joke as the cryptocurrency was getting people’s attention. It is also the first dog-themed meme coin.

After the trade, Dogecoin price rose 14% to $0.0799 from $0.07004, an interesting development as the altcoin’s RSI fell below 30% on Wednesday, placing the crypto asset in oversold territory. It would be interesting if Musk and Markus’ interaction on Twitter led to another DOGE price hike.

doecoin doecoin Photo: Unsplash

Musk, in a previous interview with TMZ, had said: “Fate loves irony. Dogecoin was invented as a joke, essentially to make fun of cryptocurrencies. What would be the most ironic result? The currency that started as a joke, in fact , becomes the real currency. To the moon!

He also told Time magazine that DOGE was better than Bitcoin in terms of financial transactions as its cost per transaction is lower and its transaction volume per second is higher.

Musk has been instrumental in many meme coin price increases. His debut as a host on the American comedy television show. it shot itself DOGE capped at $90 billion and helped the meme coin reach its all-time high of $0.7376.

Dogecoin saw a 20% rise in price in April when Musk invested in Twitter and hinted at the possibility of accepting the meme coin as a form of payment on the microblogging site. Another bombshell struck a few days later when it was announced that the billionaire would be taking over Twitter through a $44 billion takeover.

Dogecoin was trading up 20.04% at $0.09162, on 24-hour volume of $2,679,515,459, as of 12:52 a.m. ET. m. ET on Friday, according to data from CoinMarketCap.

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