Why Dogecoin's Price Was Sinking on Sunday
The mighty bark that was Dogecoin's (CRYPTO: DOGE) bark at the end of last week softened into a whimper on Sunday. The effect of the cryptocurrency's frequent cheerleader Elon Musk buying Twitter (NYSE: TWTR) was obviously fading fast. As of mid-afternoon that day, the meme cryptocurrency's price was down by nearly 9% over the preceding 24 hours. All things considered, Dogecoin still rose 60% between Friday afternoon and Sunday evening, Eastern Time.
Like many other cryptocurrencies frozen by the crypto winter, Dogecoin wasn't doing particularly well before The Musk Effect took hold. As the Tesla (NASDAQ: TSLA) CEO neared success in his renewed pursuit of Twitter, however, investors rediscovered their love of the coin. When the deal was finally clinched, Dogecoin saw a very healthy price pop.
To his credit, Musk does more than simply talk the talk with the cryptocurrency. Against any solid logic or sense, Tesla itself holds dogecoin (or at least it did, as of this summer), and accepts it as a form of payment. In the past, the company's leader has tweeted enthusiastically from time to time about its merits.
Source Fool.com
