A federal lawsuit accusing Elon Musk and his company, Tesla, of manipulating the price of Dogecoin has been dismissed. U.S. District Judge Alvin Hellerstein in Manhattan ruled on August 29, 2024, that Musk’s tweets about Dogecoin were aspirational and amounted to “puffery,” rather than factual statements that could be proven false.
So, is it time to buy Dogecoin? Dogecoin’s price was down about 1% on the day, trading around 10 cents at the time of the ruling. There has been a slow and steady rise in Dogecoin’s price, which is much healthier than the sudden spikes that tend to get shorted back down. Slow gains allow Dogecoin to build new support levels and maintain higher prices. According to reports, the net flow of large Dogecoin holders has increased, indicating that these big players are building their positions.
In August, Dogecoin’s monthly chart formed a red candle with a lower long wick, hinting at a potential reversal. As we enter September, market predictions can be made based on the pattern of the current month’s candle. If the September candle opens and closes above the middle of August’s red candle, it could indicate a bullish trend.
Here’s More About The Lawsuit
The lawsuit, initially filed in June 2022, claimed that Musk and Tesla engaged in market manipulation by using Musk’s public influence, including tweets and appearances on “Saturday Night Live,” to artificially inflate Dogecoin’s value. The plaintiffs alleged that Musk’s actions, such as changing Twitter’s logo to the Dogecoin Shiba Inu dog, were part of a strategy to profit from insider trading. The plaintiffs sought $258 billion in damages, arguing that Musk’s tweets and public endorsements misled investors.
