Tesla CEO Elon Musk has a significant influence on Dogecoin's price. The meme cryptocurrency usually soars after the electric car billionaire mentions it favorably in tweets. However, the altcoin is currently down about 60 percent from its recent peak. Did Musk sell Dogecoin and cause a sharp price drop?
Dogecoin started as an internet joke, which is how it got the joke currency nickname. The crypto hit an all-time high of $0.74 ahead of Musk hosting Saturday Night Live. Since then, Dogecoin has retreated to $0.31 currently.
Elon Musk's investment in Dogecoin
In February 2021, Musk revealed that he bought Dogecoin for his baby son named X. The Tesla and SpaceX chief didn’t reveal the size of that purchase. No one knows the exact size of his Dogecoin holding. However, Musk is thought to be the mysterious owner of a crypto address with about 37 million Dogecoin worth more than $10 million at the current price.
Did Elon Musk sell Dogecoin?
Musk stated clearly in May 2021 that he hasn't sold any Dogecoin and that he doesn't have any plans to sell. The billionaire has labeled himself the “Ultimate hodler” of Dogecoin and the “Dogefather.”
Why Elon Musk supports Dogecoin
Musk has publicly supported Dogecoin more than any other cryptocurrency. The Tesla chief has called DOGE his favorite crypto. Musk’s SpaceX is accepting Dogecoin payments for a mission to send a satellite dubbed Doge-1 to the moon.
Also, the billionaire has asked his Twitter fans whether Tesla should accept Dogecoin payments for car purchases. Most of the users who responded to the poll supported the idea.
Musk is excited about Dogecoin for a variety of reasons. As someone who likes jokes, the meme crypto gives him a tool to advance his playful side. However, the billionaire also thinks that Dogecoin has the potential to become a global payment system, particularly as a Bitcoin alternative. After Tesla halted Bitcoin payment due to environmental concerns, Musk revealed that he's working with Dogecoin developers to improve the altcoin’s transactional efficiency.
Will Dogecoin ever reach $1?
Dogecoin is among the altcoins with vibrant communities. Fans of the meme crypto have long desired to see it reach $1. They think that hitting $1 would get more people to take the cryptocurrency seriously. Recently, Dogecoin came within striking distance of the $1 price milestone when it soared to an all-time high of $0.74.
Despite its recent pullback, DOGE still carries gains of 12,000 percent over the past year. The altcoin has risen due to its increasing adoption as an investment and payment. Considering that Dogecoin is under $1, it's among the top selections for investors seeking cheap cryptocurrencies to buy.
As a payment, more businesses are accepting Dogecoin. Recently, electronics retail giant Newegg joined the list of prominent companies accepting Dogecoin payments. The altcoin needs to gain 230 percent to reach fans’ desired price milestone. If its uptake as an investment and payment continues, DOGE's price could reach $1 soon.
The Dogecoin community has launched several campaigns to try to push the crypto’s price to $1. The recent one took place on April 20 with a campaign dubbed "Doge Day 420."
Dogecoin's price prediction
Even though some investors wonder if Musk sold Dogecoin, the meme crypto still has optimistic price predictions. WalletInvestor expects the altcoin to reach $0.43 in a year and $0.99 in five years, which shows upside potential to the current price.
Long Forecast sees DOGE closing 2021 at $0.37, which implies a 9 percent upside. It predicts the price hitting $0.84 in 2025, which suggests nearly a 150 percent upside. Digital Coin Price predicts Dogecoin closing 2021 at $0.49, which implies a 60 percent upside. Digital Coin Price expects the altcoin to cross $1 in 2025, which suggests a 230 percent upside to the current price.