Dogecoin Soared After Elon Musk Bought 9.2% Of Twitter, What’s Next?

Dogecoin (DOGE) had a boost that brought it to a nearly two-month high after Elon Musk bought 9.2% on Twitter ($ 2.8 billion investment) according to a 13G file from the Securities and Exchange Commission released on Monday, making it the company’s largest company. . largest shareholder.

Will Elon Musk redeem Twitter?

The big purchase of Tesla co-founder and CEO Elon Musk seems to be following recent Twitter poll made by himself where users have expressed dissatisfaction with the platform.

“Free speech is essential for a functioning democracy. Do you think Twitter strictly adheres to this principle? The consequences of this election will be serious. Please vote carefully,” read the Musk poll, and more than 70% of users responded. “No.”

Free speech is essential for a functioning democracy.

Do you think Twitter strictly adheres to this principle?

– Elon Musk (@elonmusk) March 25, 2022

Although he is very popular on the social network, Musk has been an outspoken critic of Twitter for some time. He flirted with the possibility of building his own platform. Now, he owns shares four times larger than the shares held by Twitter co-founder Jack Dorsey. Many expect this move to mean Musk will push forward a plan to bring Twitter closer to its beliefs and lead to a purchase.

Dan Ives, an analyst at Wedbush Securities, commented to The Guardian: “We would expect this passive interest as just the beginning of broader conversations with the Twitter board / management, which could ultimately lead to an active interest and potentially more aggressive ownership role of Twitter.”

Musk’s purchase was reflected in the company’s stock price with a spike of more than 25% in pre-market trading. Twitter added about $ 8 billion in value when it peaked, and Musk’s $ 2.8 billion investment was valued at more than $ 3.5 billion.

Related Reading | Price Analysis: Dogecoin Appreciate, Where Does It Come Next?

How does Dogecoin affect you?

“Given that Twitter serves as the actual public square, failing to adhere to free speech principles fundamentally undermines democracy. What can be done? Is a new platform needed?” Musk had tweeted after the election. To whom the creator of Dogecoin answered:

“I think it starts with them clearly articulating their rules – the way they control, for example, seems completely arbitrary, and I feel like a lot of people are afraid to tweet what they really think at the risk of being misplaced if the rules aren’t clear. it is a minefield. ”

Because this purchase suggests that Musk has a personal interest in turning Twitter’s policy around as he sees fit, it can also be read as the CEO acting on the wishes of his followers. And beyond freedom of expression, many of Musk’s supporters are supporters of Dogecoin.

Recently, the CEO tweeted a video about the coin, which was mostly a satire, which suggests that the price of the coin itself will grow exponentially and surpass all larger coins. But Elon Musk is joking aside, he is a strong supporter of DOGE, and his popular events have become a determining factor for the price of DOGE.

Related Reading | Dogecoin Spikes 10% After Elon Musk Reveals He Is Not Selling

Therefore, users expect Elon Musk to push the social media platform to take Dogecoin as a payment option and further integrate the currency. The CEO has already integrated DOGE as a payment for Tesla merchandise, after which it soared in value by 15% to $ 0.20.

DOGE plunged 8.36% in the day after the news, jumping from $ 0.1431 to $ 0.155. After a four-month drastic drop, the market’s currency limit added more than $ 1.5 billion in less than an hour.

A day before the purchase was revealed, some traders predicted that the price of DOGE would climb to $ 0.17- $ 0.18 after it broke local trend resistance with bulls defending the $ 0.13 zone.

The currency itself could see significant uptrend in the coming days if the bulls manage to feed above the 200-day SMA price target. Recent events related to Musk could jump as an important factor for climbing according to further developments and announcements, and as the currency itself registers a high correlation with larger currencies, the price movement of Bitcoin will also be important for future performance.