Instead of going long every time Tesla Inc (NASDAQ:TSLA) CEO Elon Musk mentions Dogecoin (CRYPTO: DOGE), traders may be taking a different course of action.
The Lawmaster Explains: Larry Cermark, who goes by the handle “lawmaster” on Twitter, said he used to make “decent money” by going long on DOGE after Musk tweets but now that it’s a “super crowded bot trade,” he shorts the meme coin and its “almost as profitable.”
I used to make decent money longing all the Doge mentions but now that it’s a super crowded bot trade I just short as quickly as I can and it’s almost as profitable
— Larry Cermak (@lawmaster) January 25, 2022
Interestingly, Cermark, vice president of research at The Block, made his comments in response to Musk’s latest tweet that contained a proposal to McDonald’s. That tweet has induced a hamburger frenzy among the DOGE Army, but a sustainable northwards impact on DOGE prices is yet to be seen.
Are Musk’s tweets really failing to send DOGE to the moon? Here are five of the entrepreneur’s recent tweets and their impact on the meme coin’s price action.
See Also: How To Buy Dogecoin (DOGE)
I’ll Eat A Happy Meal: On Jan. 25, Musk said he will eat a happy meal on TV if McDonald’s accepts DOGE.
I will eat a happy meal on tv if @McDonalds accepts Dogecoin
— Elon Musk (@elonmusk) January 25, 2022
That day DOGE touched a high of $0.1472. It closed at $0.143, according to CoinMarketCap data.
Dogecoin to USD Chart After Musk’s McDonald’s Tweet — Courtesy CoinMarketCap
DOGE refused to budge as is evident from the included chart and in fact dropped shortly after Musk’s tweet.
An “Entertaining” Outcome: Musk interacted with DOGE co-creator Billy Markus on Jan. 17. Markus lamented meltdowns by people about DOGE’s origin as a joke. Musk said in response, “The most entertaining outcome is the most likely.”
The most entertaining outcome is the most likely
— Elon Musk (@elonmusk) January 17, 2022
However, Musk’s tweet did not buoy the price of DOGE. DOGE rose to an intraday high of $0.1738 post his tweet and ended the 24 hour period down at $0.1655.
Dogecoin to USD Chart After Musk Interacted With Billy Markus — Courtesy CoinMarketCap
A downwards trend is clearly visible after Musk’s tweet on the DOGE chart.
Santa Floki: Musk tweeted a photo of his Shiba Inu Floki on Christmas day all dressed up in a cute Santa outfit. Santa’s little helper generated plenty of buzz online but it did not translate into a concrete price rise for DOGE.
Floki Santa pic.twitter.com/y3CTq16bGi
— Elon Musk (@elonmusk) December 25, 2021
Post Musk’s tweet DOGE touched an intraday high of $0.1925 but closed the 24 hour period at $0.19.
Dogecoin to USD Chart After Musk’s “Santa Floki” Tweet — Courtesy CoinMarketCap
A sharp drop in DOGE prices is clearly visible in the DOGE price chart.
Tesla’s DOGE Trinkets: Musk announced Tesla will make some merchandise buyable with DOGE on Dec. 14.
Tesla will make some merch buyable with Doge & see how it goes
— Elon Musk (@elonmusk) December 14, 2021
On the day of the announcement, DOGE spiked to a high of $0.2196 and then ended the 24-hour period at $0.1802. The spike was not sustained.
Dogecoin to USD Chart After Musk Said Tesla Would Accept The Memecoin For Certain Merchandise — Courtesy CoinMarketCap
From the DOGE price chart, we can see that the price of the meme coin began to decline shortly after Musk’s tweet, even though the coin had been spiking before Musk made his comment on Twitter.
Dooooge: Musk tweeted “Dooooge” in response to a CoinDesk story that touched on Ethereum’s (ETH) high transaction fee.
— Elon Musk (@elonmusk) December 2, 2021
Even though DOGE spiked to an intraday high of $0.1706 on the day Musk tweeted, it ended the intraday session at $0.1576.
Dogecoin to USD Chart After Musk Posted “Dooooge” On Twitter — Courtesy CoinMarketCap
DOGE can be seen spiking after Musk’s tweet and then it registers a fall in price as is evident from the included chart.