A recent price manipulation case against Elon Musk and his electric car company, Tesla, has been thrown out. It was alleged that the price of Dogecoin was manipulated, which led to $258 billion in losses.
A US District Court judge tossed out the case in stating “no reasonable investor” could base their investment choices on Musk’s Dogecoin tweets.
The US District Judge, Alvin Hellerstein of the US District Court for the Southern District of New York, discussed the lack factual veracity of the defendant’s tweets about Dogecoin, stating that they were likely “susceptible to be falsified.”
He added that the statements in question were more akin to “puffery” rather than actual facts. defendants lied about several “material facts” in Musk’s tweets about Dogecoin. Dogecoin owners were unhappy with Musk and Tesla, so they filed a lawsuit in June 2022, asking for $258 billion in damages.
The investors claimed Musk raised the price of Dogecoin “more than 36,000% over two years and then let it crash.” They also said Elon Musk had used his position as the wealthiest man in the world to run and manipulate the Dogecoin Pyramid Scheme.
Musk had initially asked for the case to be thrown out on March 31. In Manhattan’s federal court, his lawyers called the claims and the demand for $258 billion in damages a “fanciful work of fiction.”
Dogecoin Stabilizes Following News
After the news, DOGE seems to have recovered from the drop it experienced initially. Analyzing the 30-minute DOGE/USDT chart, we can observe a period of volatility related to rapid movements of price levels coinciding with the case dismissal.
This comes after a dip in the meme coin’s prices, as depicted by the two red candlesticks. This initial reaction could be attributed to market volatility or simply an upset reaction towards the news. But, the green candlesticks that followed showed a quick rebound of the price. This signified the interest of buyers and support at the $0.099 level.
One could get the meme coin for around $0.09985 as of press time. The price has been holding in a tight range around the 09985 mark, as seen from the chart below with the red zone. This consolidation implies that the market is processing the news, and neither the buyers nor sellers are aggressive.
Bullish Pressure Likely
The chart shows an immediate barrier at $0.101, at the top side of the recent consolidation zone or the end of the recent trading range. There will be more bullish pressure if the price moves above this level.
However, it has some drawbacks, including the fact that $0.099 is the first support line. Trading above this level would help keep prices at the current level. Nonetheless, the price movement in the last few hours has stagnated. Which means that the market is neutral as the participants wait for more triggers.
No directional solid movement is observed in the market, which indicates that it is indecisive.
30-minute DOGE/USDT Chart | Source: TradingView
Dogecoin’s price has been relatively stable after the lawsuit against Elon Musk and Tesla was thrown out. However, volatility was observed in the initial period. The market has been relatively stable recently, with prices fluctuating within a minimal range.
A break above $0.101 could lead to a bullish continuation, while a move below $0.099 could indicate further downward pressure.
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