Dogecoin, the coin that has received the attention of billionaire Elon Musk, has increased by 150% since Monday. The reason for the crazy pump scenario of one of these top coin memes is the official deal to buy Twitter of Tesla billionaire Elon Musk's father. So when will Dogecoin pump? Where will the dog coin stop? Let's find out with Holdstation in this analysis!
Reasons for growth
The influence of Elon Musk
Elon Musk's influence on Dogecoin has been evident since April 2021. When at this time the world's richest billionaire announced Dogecoin would be accepted for payment with some Tesla items after Bitcoin.
After closing the deal to acquire twitter, the CEO of SpaceX, the owner of Tesla has officially become the new owner of one of the leading social networks twitter. This event has contributed significantly to the price of Dogecoin flying wildly during the past week.
Crypto Market
Contributing a significant part to this development of Dogecoin is the positive price line of the coin with the largest market capitalization in the entire BTC market. BTC has had a "green" Halloween week when there was a time when BTC hit 21k in the past week.
The Great Burn of 2022 Vote is now LIVE 🔥
— Dogechain💜 (Giving away a Tesla) (@DogechainFamily) October 23, 2022
Do you want the Dogechain foundation to burn 80% of the total supply and reduce the vesting period of Early Shibes airdrop from 48 to 6 months? YES/NO ✅ ❌
🗳 Full proposal overview and vote:
🌐 https://t.co/fruuRUq6ni pic.twitter.com/joksIDMWGk
In addition, coincident with the growth of Dogecoin, Doge Chain announced a new roadmap, Catalyst also announced to hold a vote for the creation of a token burn mechanism to reduce the supply of Dogecoin here. This has also partly contributed to the strong growth of this meme coin in the past 1 week.
Where Will Dogecoin's Stop
Onchain data
According to analytical data source from Data Nerd
After Doge surged with the news that Elon Musk officially bought Twitter, there were signs that Smart Money poured money into dog memecoins again, namely BONE (Shibaswap) and TAMA (Tamadoge)
Pictured is the BONE balance of Smart Money, sorted from high to low by week.
A wallet called rektfc.eth yesterday also bought 1.4 million TAMA ($34k) and 834 billion QOM ($30.9k)
If the money shows signs of flowing into the meme coins, then the high rate of Dogecoin will continue to fly, maybe not as strong as last week, the upside momentum is still there.
Further explanation for Dogecoin's bullish momentum why it's still there:
At first, Elon Musk just officially bought Twitter, but he has fired a bunch of former Twitter employees, even senior positions. The current CEO of Twitter is Parag Agrawal and CFO (Chief CFO) Ned Segal have left the headquarters (in San Francisco, USA) and will quit here from October 28, just one day after Musk takes over.
➡️This is nothing but an act of "changing blood" for one of the world's largest social networking sites by the new CEO.
Just recently promoted, to put on a new shirt for Twitter with the head of the richest billionaire in the world, he is cherishing plans and just waiting for the announcement time.
Once new twitter campaigns are announced, which in some way bring optimism or positive outlook to the crypto market, the momentum for Dogecoin to continue flying is still there.
Personal perspective
Considering the analysis of the macro situation, we have the factor of announcing the interest rate increase at dawn on November 4, Vietnam time. The expected interest rate is 0.75% if the reality is optimistic or nothing changes, Dogecoin is highly likely not to be negatively affected. However, on the contrary, if the actual announced interest rate is higher than the forecast, then surely Dogecoin will be more or less under the general pressure of the dollar strength index (DXY) going up again.
Looking at the US GDP last quarter, we can fully expect a positive scenario for the cryptocurrency market this November. Twitter's "blood change" will also be a factor that investors should pay attention to when from now on, any strategy or announcement of twitter is the intervention of Elon Musk. This will directly affect the price of Dogecoin in the near term.
The individual writer is giving a higher success rate to the scenario that Dogecoin will soon conquer $0.2 this November. Investors can consider disbursing 1% of capital to try their luck with Dogecoin in the near future. The time to have a suitable entry for Dogecoin is before the announcement of interest rate hike when BTC tends to correct to the 20k mark in the short term. Investors always pay attention: investing in meme coins is an extremely risky investment, investors always have to carefully consider and manage capital before investing.
Disclaimer:
The information, statements and conjecture contained in this article, including opinions expressed, are based on information sources that Holdstation believes those are reliable. The opinions expressed in this article are personal opinions expressed after careful consideration and based on the best information we have at the writing's time. This article is not and should not be explained as an offer or solicitation to buy/sell any tokens/NFTs.
Holdstation is not responsible for any direct or indirect damages arising from the use of this article content.
