Elon Musk's favorite memecoin, dogecoin (DOGE), appears to have lost the momentum it was gathering following Tuesday's news that the Tesla (TSLA) CEO's purchase of Twitter (TWTR) was back on the table.
The Shiba Inu dog-meme-inspired crypto was trading at around $0.063 at the time of writing, a decline of 4.5% compared to the $0.066 it rallied to at approximately 00:30 UTC Wednesday.
Having treaded water in the range of $0.059-$0.061 for the past few days, DOGE saw a spike Tuesday following the news that Musk had proposed moving forward again with his bid to buy Twitter.
Traders see Musk's proposed plans to buy Twitter as bullish for DOGE and crypto more broadly, given the possibility of cryptocurrency payments being integrated into the platform and Musk's well-known interest in the meme-based crypto.
However, this relationship may be decoupling should DOGE's rally continue to taper off.
The Tesla CEO first offered to buy Twitter in April for around $44 billion in cash, which was accepted by the social media company's board. However, Musk scrapped his bid in July over claims that Twitter had made false and misleading representations over the number of spam or fake accounts on the platform.
Following news that the purchase may be back on, Twitter shares surged 13% and were halted Tuesday morning at $47.96, before briefly resuming trading at the end of day to close at $52.05. On Wednesday morning, Twitter shares were down about 2.3%.