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Elon Musk Hints at Tesla DOGE Alliance but Lands Short of the Moon

elon-musk-hints-at-tesla-doge-alliance-but-lands-short-of-the-moon

Dogecoin, Ether Talking Points:

  • Ethereum (ETH/USD) Ignites hope for Alt Coins with Fresh All-Time High
  • Elon Musk hints at Tesla Dogecoin alliance after SNL wipes out recent gains
  • Crowd psychology remains a key catalyst for the imminent move

To learn more about crowd psychology, check out DailyFX Education

Throughout the year, Bitcoin (BTC/USD) and Ether (ETH/USD) have experienced an enormous amount of institutional interest which continues to gain traction at a rapid pace. Although the original Alt Coin, Ether (ETH/USD), continues to achieve fresh all-time highs, it’s meme-based Dogecoin’s rapid rise to fame that continues to dominate headlines.

For those who may recall, it was Tesla’s $1.5 billion investment into Bitcoin that cited a surge in institutional demand for major cryptocurrencies, making him a key proponent in the digital realm which may potentially result in Tesla adopting Dogecoin as an alternative method of payment.

Source: Elon Musk Twitter

Dogecoin Gains Dissipate During Elon Musk SNL Debut

Over the past four weeks, Tesla CEO and SpaceX founder, Elon Musk has expressed extensive optimism about Dogecoin, an obscure cryptocurrency that was originally created as a joke to ridicule the crypto sphere. With crowd psychology and speculation remaining as the dominant catalysts of price action, prices soared and Dogecoin flew up the alt-coin hierarchy, surpassing Ripple (XRP) as the fourth largest cryptocurrency in terms of market cap.

The move was further exacerbated when Musk announced his 08 May 2021 debut on SNL (Saturday Night Live) and by Saturday afternoon, Dogecoin had reached fresh all-time high just short of the key psychological level of $0.70. But after enjoying an exorbitant 1300% rise over a brief four week period, Dogecoin fanatics were left unimpressed by Musk’s performance which saw prices decline 39% within the first 5 minutes of the show, wiping out approximately $20 billion from DOGE/USD market cap.

Dogecoin (DOGE/USD) Daily Chart

Chart prepared by Tammy Da Costa using Trading View

However, while prices attempt to recover, Musk continues to drive volatility after his twitter poll fueled speculation once again and prices climbed 18%. Although the reaction was short lived, Elon Musk’s ability to drive crowd psychology cannot be ignored.

Dogecoin (DOGE/USD) 15 Minute Chart

Chart prepared by Tammy Da Costa using Trading View

— Written by Tammy Da Costa, Market Writer for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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