Market Analysis

Dogecoin (DOGE) prices surged but did not skyrocket after receiving another endorsement from Elon Musk on Twitter this Thursday morning.

The billionaire entrepreneur published a tweet at around 0843 UTC—a Godfather meme that showed Marlon Brando’s iconic character, Don Vito Corleone, with a text that read, “YOU COME TO ME AT RUNTIME TO TELL ME THE CODE YOU ARE RUNNING DOES NOT COMPILE.”

Meanwhile, Musk captioned the tweet, writing “Release the Doge” with an exclamation mark.

Seconds into the tweet, the DOGE/USD exchange rate surged from $0.24 to $0.261—about 8.42%. A sell-off followed suit, which took the pair as low as $0.247. Just then, at 0924 UTC, Musk tweeted another gibbering Dogecoin message, which read “Baby Doge, doo, doo, doo, doo, doo, Baby Doge, doo, doo, doo, doo, doo, Baby Doge, doo, doo, doo, doo, doo, Baby Doge.”

DOGE/USD rose 5.22% to 0.260 after the second tweet.

In the next couple of hours, DOGE/USD attempted to reclaim the intraday high of $0.261 on Musk factor, but profit-takers kept offsetting their upside bias, as shown via the large minute-candle bullish wicks in the chart above.

Nevertheless, Dogecoin was still down by almost 0.5% around the London noon session Thursday, hinting that Musk’s influence on the cryptocurrency market has been in decline.

Earlier this year, the Tesla CEO’s whole-hearted endorsement of Dogecoin had caused massive retail-led price spikes, insomuch that the cryptocurrency’s market cap peaked at almost $100 billion in early May.

Meanwhile, the DOGE/USD exchange rate surged to its record high of $0.76.

The pair is now worth half of its value two months ago, primarily due to a significant crypto market correction that saw almost all the top-cap assets, including Bitcoin (BTC), Ether (ETH), and XRP, crashing by more than 50% as well. Altcoins such as Dogecoin typically trade in sync with Bitcoin.

Baby Doge booms, meanwhile

While Dogecoin logged brief upside pumps, its copycat meme token, dubbed as Baby Doge, climbed sharply after Musk’s 0924 UTC tweet.

Baby Doge was worth around $0.00000001 before Musk’s tweet but surged by more than 35% later. Nevertheless, the meme token’s value remained too low even for CoinMarketCap to calculate. Its market cap was also zero at press time.

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This article was originally published by Cointelegraph.com. Read the original article here.