The meme cryptocurrency's latest rally kicked off after Musk posted a simple "X" tweet on Wednesday, which many interpreted as a signal about upcoming payment features on the social media platform. The Tesla CEO has previously expressed interest in incorporating crypto payments, particularly Dogecoin, into X's ecosystem.
Market analysts note that Dogecoin's price movements continue to be heavily influenced by Musk's social media activity and statements about the cryptocurrency. The billionaire's past tweets and comments about DOGE have triggered similar price spikes.
"Musk's ability to move Dogecoin prices with simple tweets shows the speculative nature of meme coins and their sensitivity to social media sentiment," said Marcus Chen, cryptocurrency analyst at Digital Assets Research.
The latest price jump pushed Dogecoin back into the top 10 cryptocurrencies by market capitalization. Trading volume also saw a sharp increase across major exchanges as retail traders rushed to capitalize on the momentum.
However, some experts caution that price movements based purely on social media speculation may not be sustainable without actual implementation of payment features on X. The platform's payment plans and potential Dogecoin integration remain unclear despite ongoing rumors.
X has not officially confirmed any cryptocurrency payment features, though Musk has previously discussed his vision of turning the platform into an "everything app" with integrated financial services.
As the speculation continues, Dogecoin's price action serves as a reminder of the volatile nature of cryptocurrency markets and their responsiveness to social media influences, particularly from high-profile figures like Musk.