Dogecoin, DOGE, has ended its long-running downtrend. The meme coin gained 30% within the past 24 hours. Elon Musk expressed his support for DOGE in the trend’s reversal.

Tesla’s billionaire CEO (NASDAQ:) was praised as the currency with the highest potential. As a reply to Dogecoin creator Billy Markus (a.k.a. Shibetoshi Nakamoto opened up to explain why he likes Dogecoin.

“The reason I like dogecoin is because it knows it is stupid”, wrote the pseudonymous Shibetoshi, to which Musk replied within minutes: “It has potential as a currency”.

Dogecoin knows that it’s stupid, which is why i love it

— Shibetoshi Nakamoto (@BillyM2k) May 12, 2022

Shibetoshi expressed his appreciation for Musk’s sentiment, claiming that he enjoys “that something stupid could also have utility and be successful.”

Dogecoin’s price reacted to the Twitter exchange immediately, swelling by 5% from a value of $0.08052, up to $0.08472, according to CoinMarketCap. It rose at the same rate as before, with $0.9114 at this time.

The rally resulted in a 17.36% increase in Dogecoin’s market value, joining the slight recovery of other major cryptos as the cryptocurrency market cap as a whole jumped 13% to $1.3 trillion in the span of the past 24 hours.

LUNA’s Collapse Triggers Massive DOGE Transfers

Despite today’s recovery, the recent crypto market turmoil evoked some major reactionary movements from Dogecoin whales.

In one transaction yesterday, Dogecoin worth close to $233 Million was moved from an unidentified address to an anonyme wallet. Dogecoin Whale Alert reports that more than 20 transactions of a large magnitude were performed yesterday. Dogecoins were sent from various smaller wallets and transferred to unknown Dogecoin addresses.

Similar trends were observed earlier in the year, when approximately 40,000 wallets disposed of their DOGE coins within a 10-day span. The drastic drop in Dogecoin holders suggests that there may have been larger whales accumulating DOGE coin.

Why should you take care?

Could this be the Dogefather’s return? Last year, the crypto space named Elon Musk “the Dogefather” after his consistent endorsement of Dogecoin through social media channels. Musk appeared to have abandoned Dogecoin later and established close relationships with Shina Iu (SHIB). Musk seemed to focus once more on Dogecoin after details about his Twitter deal were revealed. This suggests that DOGE might become a cryptocurrency for Twitter subscription services.

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