Elon Musk Suspected of Market Manipulation After His Recent DOGE-Centric Post

Tesla’s Elon Musk has come under suspicion after his recent DOGE-centric post, which changed the downward trend of the dog-themed meme coin to bullish

Elon Musk has once again sparked a frenzy among crypto enthusiasts with his latest post, which appears to be centered around the dog-themed meme coin, Dogecoin (DOGE). Musk took to X on November 25, posting an image of a dog wearing sunglasses, along with the caption "D.O.G.E is inevitable." While the post itself does not explicitly mention Dogecoin, many believe that Musk is subtly referring to the meme coin.

Interestingly, Musk's post seems to have had a direct impact on DOGE's price movements. According to data from CoinGecko, the meme coin surged by over 10% following Musk's post, moving from $0.38 to hit an intraday high of $0.42. At the time of writing, DOGE is trading down by about 7% over the past 24 hours, selling at $0.39.

On a daily price chart, the meme coin is seen trading within a range, with lower support at $0.37 and resistance up at $0.42. A breakout from either side of this range could determine DOG's next price direction.

A look at DOGE's price performance over the past few months reveals that Musk's recent post is not the first time that his tweets have influenced DOGE's price. In October 2023, Musk posted an image of himself and a DOGE-like being without any caption.

This brief post sparked a surge in Dogecoin's price, which went up by 14% at the time. Notably, Dogecoin was trading below $0.2 at the time of Musk's post in October. From this point, DOGE went on to rally, building momentum to reach a monthly high of $0.477.

However, Musk's latest tweet failed to propel the meme coin's price past its recent high, as DOGE price took a nosedive to hit $0.39 on Friday.

Musk and the Court

About two years ago, a group of investors filed a class-action lawsuit against Musk, alleging that he manipulated the price of Dogecoin for his own gain. The investors are demanding a total of $258 billion in damages.

An analysis of the court documents reveals that the investors allege that Musk manipulated the price of DOGE through a series of social media posts, which included frequent tweets about the meme coin and his appearance on NBC's Saturday Night Live.

The plaintiff, Keith Johnson, wrote in the initial legal filing that:

Defendant Musk is the self-appointed ‘Dogefather,’ ‘former CEO of Dogecoin,’ partner, developer, spokesperson, publicist, salesman, marketer, and promoter of Dogecoin — who assembled the ‘Doge Army’ including his corporations and various billionaires, influencers, and celebrities to increase the price, market cap and trading volume of Dogecoin.

On August 29, U.S. District Judge Alvin Hellerstein dismissed the case after determining that "no reasonable" investor would make investment decisions based on such tweets. As previously reported by CNF, the investors have since withdrawn their appeal.

Following these reports, an X user, who goes by the name "Sir Doge of the Coin," humorously disclosed that Musk deliberately named a government department 'DOGE' so he could post about the meme coin again whenever he wants without getting into trouble.

Elon Musk literally named a government department ’DOGE’ so he can shitpost about it again whenever he wants without getting in trouble 😂

Fucking legend! 😂 https://t.co/PWKOf83IpF

— Sir Doge of the Coin ⚔️ (@dogeofficialceo) November 25, 2024

DOGE Price Analysis

Analyst Ali Martinez observes that DOGE has just printed a bull flag pattern on its 4-hour timeframe, which suggests a bullish continuation. According to the analyst, the meme coin could surge by 120% to hit $0.82 as long its support level at $0.37 is maintained.

Analyst Ali Martinez observes that DOGE has just printed a bull flag pattern on its 4-hour timeframe, which suggests a bullish continuation. According to the analyst, the meme coin could surge by 120% to hit $0.82 as long its support level at $0.37 is maintained.

Another analyst, known as Trader Tardigrade, argues that DOGE will drop to $0.3 before rallying to $3. According to him, a similar correction occurred in the 2017/2018 cycle before embarking on its bullish run. An analysis of his thesis reveals that the asset had entered the overbought territory at the time of his prediction.

Also, DOGE's Fear and Greed index is "sitting" above 80, which is the zone of Extreme Greed. Technically, assets in this position pull back