Elon Musk, the influential figure behind the social media platform X and known for his indirect endorsements of cryptocurrencies, sparked a significant surge in the novel memecoin Dogwifhat (WIF) last Sunday. The surge, which exceeded 40%, coincided with Musk’s St. Patrick’s Day post featuring a picture of three dogs adorned with hats.
Musk’s influence on memecoins
Musk’s social media posts have historically wielded considerable influence over cryptocurrency, particularly within memecoins. His previous endorsements of Dogecoin during the last bull run propelled the meme-based cryptocurrency to unprecedented popularity.
Following Musk’s post, WIF experienced a notable recovery, returning from a recent pullback. The memecoin surged from a support level of $2.06 to $3.15 by the end of the day, representing a substantial reversal in market sentiment. This bullish momentum was reflected in trading charts, suggesting a potential reversal from the preceding downturn.
The ripple effect of WIF’s surge extended to other memecoins, albeit to a lesser extent. Dogecoin, Musk’s former favorite among cryptocurrencies, saw a rebound of 16%, climbing from $0.136 to $0.159 on the same day. Similarly, SHIB, the flagship memecoin of the Shiba Inu ecosystem, experienced a 25% rally, rising from $0.00002424 to $0.00003022.
Musk’s cryptocurrency endorsements: A familiar pattern
Musk’s endorsement of WIF through his St. Patrick’s Day post follows a familiar pattern observed in his engagement with cryptocurrencies. His indirect support style, often conveyed through enigmatic social media posts, has repeatedly triggered parabolic rallies for the memecoins involved. While the recent post did not generate the same level of hype as previous endorsements, its impact on WIF’s price suggests continued influence over the market.
Despite the absence of accompanying commentary from Musk, the surge in WIF following his post indicates the potential for further upward momentum. With WIF having experienced a staggering 1,181% increase in value over the past six weeks, the recent rally could continue its upward trajectory. However, as with all cryptocurrency investments, investors should exercise caution and conduct thorough research before participating in the market.
