Dogecoin (DOGE) struggled on Saturday as hopes for widespread adoption of the coin were dashed by Elon Musk’s failed attempt to acquire Twitter.
The price of the biggest memecoin in the world fell after the disclosure by more than 4%. The token appears to be responding to Musk’s social media posts, including his rants, less strongly in recent weeks.
According to a regulatory filing, Musk canceled his $44 billion plan to acquire Twitter on Friday, claiming that the social media company is making “misleading” claims about the number of fake accounts.
The billionaire offered to buy Twitter for nearly $43 billion earlier this year. Following Musk’s suggestion that Dogecoin might be integrated into Twitter, DOGE surged after the initial announcement of the deal.
For Dogecoin To Rise, Musk Must Tweet
The world’s richest man’s ongoing social media promotion and endorsement of the token, which played a significant role in the cryptocurrency’s meteoric rise, is partly responsible for the token’s popularity.
A recent analysis found that after Musk tweeted about it, “Dogecoin” searches increased significantly in 2019 and 2020. By the time the Twitter board approved the buyout offer from the Tesla CEO, DOGE had risen by about 30%. It has, however, swiftly undone those advancements since then.
After the news, the price of Twitter stock falls.
Twitter’s stock price dropped by 6% to $34.58 on the after-hours market. The price Musk agreed to pay for the dominant social media company in April was $54.20 per share, which is a reduction of 35%. The price of Twitter’s stock fell after the bell on Friday, reaching its lowest point since March.
Bret Taylor, the head of Twitter’s board of directors, threatened to sue Musk as soon as the news broke in order to enforce the terms of the buyout agreement.
In a document, Musk’s attorneys claimed that Twitter declined to respond to multiple requests for details on spam or fraudulent accounts on the platform, which are essential to the company’s financial performance.
This month, Dogecoin is still seen soaring.
While DOGE is still reeling from the Twitter-Musk deal’s outcome, some analysts are still very bullish about it.
For instance, the cost of DOGE may be close to $0.12 this month. According to Coingecko data, the coin is currently selling for $0.0699, up 5.5 percent from the previous week.
Traders familiar with the well-known meme coin will concur that it is characterized by erratic spikes and FOMO-induced frenzy. Technical analysis predicts that the price of DOGE will increase, though it is challenging to say whether a bottom has been reached.