Elon Musk is once again flexing his stock market muscles, and this time he is fueling a rally in Dogecoin (CCC:DOGE). A series of late-night tweets accompany a roughly 50% rally in DOGE, following a busy week for the cryptocurrency. So what does Musk mean for the latest Dogecoin price predictions of $1?
As a quick refresher, Dogecoin rocketed more than 800% higher last week to roughly 8 cents. Although broad cryptocurrency sentiment was powering DOGE and its peers, Dogecoin particularly benefitted from the Reddit stocks rally. We wrote last week that as retail investors pushed GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC) higher, some on r/WallStreetBets and r/SatoshiStreetBets called for DOGE to hit $1. Riding a wave of social media gains, Dogecoin simply took off.
Now, with those $1 Dogecoin price predictions still top of mind, Musk is making sure DOGE stays relevant. What did he do?
Just two days after pledging to stay off Twitter (NYSE:TWTR), Musk began to tweet about Dogecoin. His first standalone message of the evening was a Lion King meme, where Musk photoshopped a picture to show himself raising the Shiba Inu “doge” into the sky. For those unfamiliar, as part of an effort to create a more accessible cryptocurrency, DOGE founders Billy Markus and Jackson Palmer built it around the beloved meme dog.
Importantly, Musk did not stop there. He then tweeted “Dogecoin is the people’s crypto” and “No highs, no lows, only Doge.” Perhaps recognizing is influence on DOGE prices, he followed these messages up with “I am become meme, destroyer of shorts.”
Following calls to take DOGE to $1, what do these tweets mean for Dogecoin price predictions?
Elon Musk and Dogecoin Price Predictions
ur welcome pic.twitter.com/e2KF57KLxb
— Elon Musk (@elonmusk) February 4, 2021
As Tanzeel Akhtar wrote for CoinDesk this morning, Musk is not the first to play into the meme angle of Dogecoin. Although the cryptocurrency has real bulls behind it, it is not uncommon for its more casual nature to power rallies. In recent months, this has proven true when Musk declared himself the “former CEO of Dogecoin” and when adult star Angela White shared her support for the crypto. It also comes after Reddit-fueled gains and a pro-DOGE TikTok from Tiger King star Carole Baskin.
So where do things stand? As with other cryptocurrencies, growing mainstream awareness seems like a good thing. When Musk or Baskin or even any army of Redditors brings DOGE into the spotlight, it gives the cryptocurrency a chance to hit $1. However, as we wrote last week, some of the long-term case does call for Dogecoin to move beyond its meme status.
In other words, a battle for legitimacy may be playing out. If all goes well, spikes from Musk will complement a more consistent journey to $1 for DOGE. If not, at least fans got a little crypto entertainment along the way. For right now, keep this story on your radar. With Dogecoin price predictions calling for $1, its run today above 4 cents looks interesting.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.