Dogecoin is now a long way from its all-time high of $0.7 which was brought about by billionaire Elon Musk aggressively promoting what he calls his “favorite” cryptocurrency. However, as the meme coin continues to trend low, even with the current bull sentiment, there is always the possibility of Musk resuming his very public support for Dogecoin.

Can Elon Musk Recreate 2021 For Dogecoin?

Elon Musk’s influence on the Dogecoin community and the price of the meme coin by extension is still very prominent. Just the fact that Musk had purchased Twitter had sent the price of DOGE rallying over 150% in a matter of days. But so far, there has not been much from the billionaire about the cryptocurrency.

However, looking back to early 2021 when Musk had been posting religiously about Dogecoin, one can’t help but wonder what would happen if he started doing that again. Given the current position of DOGE’s price compared to where it was back in 2021 before Musk started posting about it, the price of the meme coin would quickly reach a new all-time high.

As Bitcoinist reported, the price of DOGE rallied over 70,000% in 2021 due to Musk’s shilling. This took the altcoin from $0.0011 to $0.78 very quickly. Going from the current price trend, a similar pattern would see the price of DOGE quickly surpasses $5. Whereas another 70,000% rally would put the price above $60.

While $60 may not be realistic at this point, another consistent push from Musk can easily put Dogecoin ahead of the rest of the market. Even if the price of DOGE does not reach the expected prices, it will definitely be seeing new all-time highs if Musk threw his full weight behind it once more.

DOGE price trending at $0.089 | Source: DOGEUSD on TradingView.com

Implications For DOGE And Other Meme Coins

The implications of such a move from Elon Musk are very obvious for Dogecoin but it will also spill over to other meme coins. Musk’s shilling of Dogecoin can be rightfully said to be the trigger behind the impressive 2021 meme coin season and it could trigger another one.

Coins such as Shiba Inu and Baby Doge will easily see an upside if DOGE were to begin rallying. This is because investors will flock to other meme coins, believing they missed the train on Dogecoin, but not wanting to miss out on others.

Overall, support from Musk toward Dogecoin will not only work out in favor of the meme coin but also for the entire crypto market as his influence draws new participants to the crypto space.

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Elon Musk said during a video interview at the Qatar Economic Forum that he never told people to invest in crypto.

“I have never said that people should invest in crypto.”

The comment came in response to a question about the current state of the market and whether people should continue investing at this time.

Year-to-date outflows currently top $1.315 trillion, with many altcoins down 90% from all-time highs. Last week, as Bitcoin sunk to an 18-month low, the Fear and Greed Index summed up the general sentiment (of extreme fear) as it hit 6.

Denied telling people to invest in crypto

Following his denial, Musk said he and his companies did buy Bitcoin. But, as a small percentage of total assets, the cash spent was money they could afford to lose.

“In the case of Tesla, SpaceX, myself, we all did buy some Bitcoin, but it’s a small percentage of our total cash assets.”

He continued by saying he also bought Dogecoin, adding that Tesla accepts DOGE for merch, and “SpaceX will do the same.”

Musk explained his passion for Dogecoin as a favor to “people who are not that wealthy” that have asked him to support the meme token. He named these “not that wealthy” people like Tesla and SpaceX factory workers.

“I intend to personally support Dogecoin because I just know a lot of people who are not that wealthy that have encouraged me to buy and support Dogecoin. So I’m responding to those people.”

It’s been over a year since Musk appeared on a Saturday Night Live (SNL), in which he played the part of a financial expert explaining cryptocurrencies. During the skit, he said Dogecoin is a “hustle.”

DOGE plummeted immediately after and is currently down 81% since that appearance.

Musk accused of masterminding Dogecoin Ponzi scheme

A Dogecoin investor Keith Johnson recently filed a lawsuit against Musk in a federal court in Manhattan.

The plaintiff is suing Musk for $258 billion on the grounds of running a Dogecoin pyramid scheme. Johnson claims the defendant manipulated the token price, leading to retail losses.

Johnson is seeking $86 billion for damages due to the token price decline since the SNL appearance and wants the sum to be tripled.

Dogecoin had grown mainly off the back of billionaire Elon Musk’s shilling. By this time last year, the meme coin was booming in its full glory as tweet after tweet from the ‘Dogefather’ brought investors into the project in droves. Since then, the hype around the project has since died down as the price has lost more than 80% of its all-time high value. What’s more, is that now the meme coin seems to have developed a resistance against the billionaire’s shilling.

Dogecoin Says No To Elon

In the early hours of Friday, Elon Musk had once again tweeted in support of Dogecoin. This had developed from a tweet where Musk himself had said that the use of the word ‘billionaire’ should not be pejorative as it is “morally wrong and dumb.” A response from another tweeted user had suggested that the word ‘trillionaire’ was better than using billionaire anyway, to which Musk had replied, “Dogecoin Trillionaire, the movie.”

Dogecoin Trillionaire, the Movie

— Elon Musk (@elonmusk) May 26, 2022

Now, a tweet like this from Musk would have pumped the price of Dogecoin beyond comprehension 6-8 months ago. This would prove to not be the case this time around because although there was a small movement in the price of the digital asset, it was in no way significant. This has raised speculations in the space on whether the billionaire has indeed lost his influence on the price of the meme coin.

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At the time of writing, the tweet is a couple of hours old. Looking at the Dogecoin chart shows that there was barely any movement in the price of the meme coin at the time the tweet went live and in the hours following it. Thus leading to the conclusion that investors are no longer hanging on every word of the billionaire when it comes to DOGE. Instead, the price of the digital asset has continued to trend around the $0.077 territory.

DOGE trending at $0.0779 | Source: DOGEUSD on TradingView.com

Why DOGE Did Not Move

In the crypto space, it is very well known that hype makes a difference in the value of a digital asset. But what if that digital asset, along with the rest of the cryptocurrencies in the market, has been on an extended bear trend?

This has been the case with Dogecoin in the last couple of months. The meme coin is still trending significantly below its 100 and 200-day moving average. What this means for the digital asset is that both in the short and long term, it is a seller’s market. Thus, the bears are in control.

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The meme coin has also been in a prolonged state of consolidation. However, unlike times where consolidation usually ends with a recovery, DOGE shows no such signs. Accumulation is almost non-existent which continues to contribute to its dump in price. Without a steady accumulation trend, Dogecoin has little chance of breaking out of this consolidation in the short term.

DOGE is trading at $0.0775 at the time of writing. It still remains the 10th largest cryptocurrency in the space with a market cap of $10.34 billion.

Featured image from The Dial, chart from TradingView.com

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Celebrities shilling meme coins like Dogecoin, Shiba Inu, and Baby Doge Coin became a recurring theme throughout 2020 as the crypto markets rose. It initially came off as a real surprise to many—considering one of the biggest DOGE cheerleaders was Elon Musk, the world’s richest man, himself—but that sentiment slowly grew to disdain.

The likes of Musk made the incessant tweeting almost simulation-like: He oft-mentioned Dogecoin (as a meme, or sometimes as a feature), with DOGE pumping tens of percent in the minutes afterward.

The first few such tweets sent DOGE roaring over 100% (attracting millions of people to the coin, some even taking it as a ‘serious’ investment), eventually powering the token to a peak price of $0.70 (at a $86 billion market cap).

TikTok, trends, and Dogecoins

Such endorsement didn’t take long to become a ‘trend’ on social media. Crypto circles on TikTok, one of the world’s biggest video-sharing apps, became almost an overnight rage, with teenage investors and models creating on the trending topic for even more views.

Where top crypto investors spend most of their time.

2010-2013: Bitcointalk
2014-2015: Reddit
2016-2020: Twitter
2021-2030: TikTok https://t.co/EfYwF4Q5FU

— Qiao Wang (@QwQiao) July 7, 2020

But somewhere between the waning crypto interest came the troubles. TikTok, owned by China’s ByteDance, distanced itself from all things promotional and sponsored earlier this month, effectively banning the rising, yet dedicated, crypto hopefuls.

And while the move wasn’t received warmly by all, it was welcomed by some in the crypto space: “Cryptocurrencies are extremely volatile. Big risk, big reward. But for impressionable young folks on social media, hoping to be the next overnight crypto millionaire, these actions can have an incredibly detrimental impact on their lives and finances,” explained Justin Kline, co-founder of Markerly, in a note to CryptoSlate.

He added, “Dogecoin has fluctuated through massive ups and downs in the last few months, seemingly all orbiting around the behavior of Musk. It’s become clear that there needs to be more regulation around all this; crypto is getting too prominent to still function as the Wild, Wild West.”

Other platforms to follow?

As per Kline, TikTok’s ban on promotional advertising could soon be adopted by other social media platforms, especially those looking to reduce their participation in the world of crypto volatility. 

“I could see other platforms following suit and instituting similar bans on sponsored crypto posts in an attempt to avoid controversy,” says Kline. He adds, “But even if other similar bans don’t go into effect on other platforms, I think this effort from TikTok will provide a much-needed reset and reexamination of how influencers are operating in the crypto space. 

But such moves need to happen soon, he cautions: “We could see other apps use this as an opportunity to tighten up their policies and clamp down on speculative, unregulated posts before the situation gets out of hand or TikTok crypto influencers migrate to their platforms, attempting to recreate the same environment elsewhere.”

Hard to argue with that sentiment considering the blatant pump-and-dumps, Ponzi schemes, and outright scams that ran rampant in the past year.

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