As a professional crypto trader, it’s hard to ignore the influence of Elon Musk on the markets. His tweets and memes have sent cryptocurrencies soaring in the past, and his latest post involving his dog Floki has once again caused a stir in the crypto community.
DOGE, Floki, and SHIB are all seeing price increases following Musk’s meme featuring his dog Floki sitting in the CEO chair at Twitter. According to CoinDesk data, DOGE has risen by 5.4% in the last 24 hours, while Floki is up 41% and SHIB is also on the rise.
This is not the first time that DOGE has spiked on a Musk-related tweet. In late January, a report from the Financial Times that said Twitter is designing a system to permit crypto payments sent the meme coin soaring.
It’s clear that Musk’s influence on the markets is significant, and it’s important for traders to keep an eye on his tweets and announcements to stay ahead of the game. But what does this mean for the future of these canine-themed coins?
DOGE: Still a Top Meme Coin
Despite the recent price fluctuations, DOGE is still considered one of the top meme coins in the market. Its popularity and strong community make it a reliable investment, even during market downturns.
While DOGE is down 2% over the last three months, it’s important to note that this does not necessarily signal a market-wide sell-off. Historically, outsized gains in DOGE and other meme coins like SHIB have been the first sign of a sell-off, according to a December 2022 report from blockchain analytics firm Santiment.
However, the markets have been on an upswing in recent months, with many altcoins posting double or triple-digit gains. Bitcoin has also seen a 34% gain in the last three months, showing that the crypto market is far from dead.
Floki: Riding the Dogecoin Wave
Floki, named after Musk’s Shiba Inu dog, has become one of the hottest coins in the market following Musk’s recent tweet. The coin has increased by 41% in the last 24 hours, according to CoinGecko data.
In January, the Floki Inu DAO passed a governance resolution to do a $100 million token burn, resulting in a 100% price rally. Burning tokens decreases supply, which subsequently adds value to each token, provided the level of demand remains the same. This is sort of like a stock buy-back in the crypto world.
With its strong community and recent price rally, Floki is one to watch in the coming weeks and months. However, traders should always exercise caution when investing in newer coins with high volatility.
SHIB: A Strong Contender
SHIB, another canine-themed coin, has also seen recent price increases following Musk’s tweet. The coin is up 40% in the last three months, showing that it is a strong contender in the meme coin space.
However, it’s important to note that SHIB has also seen significant price fluctuations in the past, and traders should exercise caution when investing in this coin. With that said, SHIB has a strong community and a dedicated development team, making it a reliable investment for those who are willing to take the risk.
The crypto market is always evolving, and it’s important for traders to keep up with the latest news and trends to stay ahead of the game. Elon Musk’s recent tweet featuring his dog Floki has sent the prices of DOGE, Floki, and SHIB soaring, but traders should exercise caution and not invest more than they can afford to lose.