{"id":137879,"date":"2020-12-20T17:38:51","date_gmt":"2020-12-20T14:38:51","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/why-dogecoin-immediately-surged-25-after-elon-musk-tweeted-about-it\/"},"modified":"2020-12-20T17:38:51","modified_gmt":"2020-12-20T14:38:51","slug":"why-dogecoin-immediately-surged-25-after-elon-musk-tweeted-about-it","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/why-dogecoin-immediately-surged-25-after-elon-musk-tweeted-about-it\/","title":{"rendered":"# Why Dogecoin immediately surged 25% after Elon Musk tweeted about it"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a41cf6d637b8\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a41cf6d637b8\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/why-dogecoin-immediately-surged-25-after-elon-musk-tweeted-about-it\/#Dogecoin_trending_on_Twitter\" >Dogecoin trending on Twitter<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/why-dogecoin-immediately-surged-25-after-elon-musk-tweeted-about-it\/#What_does_DOGEs_surge_indicate\" >What does DOGE\u2019s surge indicate?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Why Dogecoin im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely surged 25% after Elon Musk tweeted about it  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>The price of Dogecoin (DOGE) rallied by roughly 25% on Dec. 20 as Tesla CEO Elon Musk once again drew attention to the meme-inspired cryptocurrency.\u00a0<\/p>\n<p>Elon Musk and his enthusiasm toward Dogecoin is a long-running meme. Every once in a while, Musk likes to tweet about Bitcoin (BTC) and the crypto market. When he does, the market reacts to it quite aggressively.<\/p>\n<p>Musk last tweeted about Dogecoin in July 2020, when he said he foresees a &#8220;Dogecoin standard future.&#8221; At the time, DOGE rallied 14%.<\/p>\n<p>The reason behind Dogecoin\u2019s upsurge when Musk tweets is quite simple. As cryptocurrency researcher Hasu <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hasufl\/status\/1340622060444405760?s=20\">explains<\/a>, \u201cprices in this space are fueled by attention.\u201d Hence, when there is a significant increase in attention, a low market cap cryptocurrency can increase rapidly.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/254942e8-919f-4430-a75f-4fb6ddae2307.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Dogecoin 1-hour price chart (Binance). Source: TradingView.com<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Dogecoin_trending_on_Twitter\"><\/span>Dogecoin trending on Twitter<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On Dec. 20, Musk started to tweet about Bitcoin, posting several tweets about the dominant cryptocurrency.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Bitcoin is my safe word<\/p>\n<p>\u2014 Elon Musk (@elonmusk) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/elonmusk\/status\/1340573003579617280?ref_src=twsrc%5Etfw\">December 20, 2020<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In the midst of it, Musk tweeted \u201cOne word: Doge,\u201d which caused a frenzy on Twitter. Dogecoin started to trend on the platform, especially as Musk changed his bio to \u201cFormer CEO of Dogecoin.\u201d<\/p>\n<p>According to data from CoinMarketCap, Dogecoin has a market capitalization of around $549 million. Compared to major cryptocurrencies, like Bitcoin, Ether (ETH) and top decentralized finance (DeFi) tokens, DOGE\u2019s valuation is substantially lower.<\/p>\n<p>Moreover, because DOGE is only the 44th largest cryptocurrency in the world, its volume and liquidity are lower than the top cryptocurrencies.<\/p>\n<p>As such, when an influential figure, like Musk, talks about DOGE, the cryptocurrency often surges as the trading activity suddenly rises.<\/p>\n<p>In November, other major altcoins saw a similar trend. For instance, as Cointelegraph reported, XRP surged massively as Bitcoin began to rally towards $19,000. On Coinbase, it surpassed $0.90\u00a0while hitting around $0.75 on other major exchanges.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_does_DOGEs_surge_indicate\"><\/span>What does DOGE\u2019s surge indicate?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Technical analysts and traders pinpoint that the upsurge of DOGE led to the start of altcoin cycles in the past. A pseudonymous trader known as \u201cCrypto Capo\u201d <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoCapo_\/status\/1340602252181049344\">said<\/a>:<\/p>\n<blockquote><p>\u201cEvery altseason starts with $DOGE pumping.\u201d<\/p><\/blockquote>\n<p>The probability of an altcoin season emerging remains high because Bitcoin faces a major resistance at $25,000 based on exchange orderbook data.<\/p>\n<p>The trader also noted that Bitcoin would likely hit $25,000 first, drop to $21,000 to reclaim support, and make its run towards $30,000. The trader <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoCapo_\/status\/1340323915512623104\">said<\/a>:<\/p>\n<blockquote><p>\u201cPotential roadmap for $BTC -$25k, then $21k-22k, then $30k Dips are for buying.\u201d<\/p><\/blockquote>\n<p>If a scenario similar to this occurs, the largest beneficiary would likely be altcoins. Traders would seek for higher-risk plays to offset the declining volatility in the Bitcoin market. <\/p>\n<p>The combination of these factors suggests that the rally of DOGE could mark the start of a new altcoin cycle in the foreseeable future.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/why-dogecoin-immediately-surged-25-after-elon-musk-tweeted-about-it\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Why Dogecoin immediately surged 25% after Elon Musk tweeted about it &#8221; The price of Dogecoin (DOGE) rallied by roughly 25% on Dec. 20 as Tesla CEO Elon Musk once again drew attention to the meme-inspired cryptocurrency.\u00a0 Elon Musk and his enthusiasm toward Dogecoin is a long-running meme. Every once in a while, Musk&#8230;<\/p>\n","protected":false},"author":1,"featured_media":137880,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/89ae7154-5b03-45db-a618-92b4752023c3.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,86883,73785],"class_list":["post-137879","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-dogecoin","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/137879","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=137879"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/137879\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/137880"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=137879"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=137879"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=137879"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}