Dogecoin (DOGE) could not muster enough strength on Saturday as the collapse of Elon Musk’s Twitter acquisition crushed hopes for the mainstream acceptance of the coin.
Following the revelation, the global price for the biggest memecoin fell more than 4 percentage points. In recent weeks, the token looks to be reacting less strongly to Musk’s social media comments, rants included.
Musk canceled his $44 billion plan to take over Twitter on Friday, alleging that the social media company is issuing “misleading” assertions about the amount of phony accounts, according to a regulatory filing.
In January, Musk proposed buying Twitter for nearly $43 trillion. DOGE appreciated substantially after Musk made a hint about incorporating Dogecoin in Twitter.
Dogecoin needs Musk tweet To Rise
The token’s popularity is partly down to the world’s richest man’s ongoing endorsement and promotion of it on social media, which contributed significantly to the cryptocurrency’s meteoric rise.
According to a recent analysis, searches for “Dogecoin” surged in 2019 and 2020 after Musk tweeted about it. DOGE had gained roughly 30 percent by the time Twitter’s board gave the green light to the Tesla CEO’s buyout proposal. But, these advances have been quickly reversed.
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The News Causes a Drop in the Stock Prices of Twitter
In the after-hours market, Twitter’s stock price decreased by 6% to $34.58. This is 35% less than the $54.20 per share price Musk agreed to pay for the social media giant in April. Following the closing bell on Friday, Twitter’s stock price dropped to its lowest level since March.
As soon as the news came, Bret Taylor, the chairman of Twitter’s board of directors, threatened to file a lawsuit versus Musk to enforce the terms of the buyout agreement.
Musk’s attorneys stated in a document that Twitter failed or refused to reply to several requests for information on fraudulent or spam accounts on the platform, which is crucial to the company’s financial performance.
DOGE's total market cap is $9.24B on the weekend chart | Source: TradingView.com
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Dogecoin still seen jumping this month
Some analysts remain optimistic about DOGE’s future, even though DOGE is reeling after the Twitter-Musk deal.
Doge could reach $0.15 within the near future. At $0.0699 right now, it is up 5.5% from the previous week.
Traders familiar with the meme coin will admit that its popularity is due to sudden surges or FOMO-induced frenzy. The technical analysis predicts that DOGE prices will increase, though it is hard to tell if this has happened.
Featured image by Mashable India. Chart at TradingView.com
