The Dogecoin price has struggled for most of the year. However, in recent days, the cryptocurrency has started to come to life. This is after the latest endorsement round by Elon Musk, which saw the cryptocurrency rise by nearly 10 per cent.
On Thursday last week, Elon Musk, the CEO of Tesla, was sued for $258 billion by a Dogecoin investor who accused him of running a pyramid scheme. The investors also included Tesla Inc. and SpaceX in his lawsuit.
One of the core complaints in the lawsuit included allegations that the mentioned parties were engaged in a scheme that manipulated the meme coin prices. The promotions and touting of Dogecoin were regarded as part of that plan. However, after driving the prices of Dogecoin up, the investor accused the three parties of letting the Dogecoin prices fall, thereby affecting his investment.
Response and Dogecoin Price Recovery
Days after the lawsuit, Elon Musk, in an interview at the Qatar Economic Forum in Doha, told Blomberg that one of the reasons he supported Dogecoin was due to people who were not wealthy encouraging him. He indicated that his promotion of the cryptocurrency was a result of a response from these people.
On his Twitter account, Elon Musk continued by indicating his support for the cryptocurrency. In a direct tweet to his over 90 million Twitter followers, Elon tweeted that he would continue supporting the cryptocurrency. Although he did not address the lawsuit directly, he also indicated he would not quit buying the crypto.
The markets seem to have responded to the back and forth responses between Elon Musk and the investor. In the last four days, Dogecoin prices have risen by 30 per cent. In today’s trading session, the crypto also looks to be aggressively following the recent price surge and is already up by 6 per cent.
Based on the recent news cycle that has been aggressively positive for Dogecoin, I expect the prices to continue rising. There is a high likelihood that we will see the crypto trading above $0.1 again.