What happened

Over the last 24 hours, the price of Dogecoin (DOGE -0.67%) has traded 16.5% higher as the meme cryptocurrency continued its massive rally this week. Over the past five days, the price of Dogecoin is up more than 80%.

So what

The rally has been triggered by Elon Musk completing his takeover of the social media giant Twitter. Musk is seen as a leader in the Dogecoin community, as it is one of three cryptocurrencies the Tesla founder owns, and his comments and actions have led to several bull runs for Dogecoin.

Many investors seem to believe that Musk may incorporate some kind of crypto component into Twitter that might include the use of Dogecoin, which might spread the cryptocurrency's exposure and use. There are reports that Twitter is working on a digital wallet prototype that would support crypto deposits and withdrawals.

Furthermore, other news reports suggest that Dogecoin is currently experiencing a short squeeze. The reports say that crypto exchanges have experienced tens of millions in liquidations on Dogecoin specifically, as traders who were shorting the token had to cover their positions.

Now what

The token started as a joke, and is known for its erratic trading that has led to huge increases and decreases in its price.

I still would advise investors to avoid purchasing the token because it does not have any special real-world use case as far as I can tell and its network does not appear to have any real technical advantage over other blockchain networks, either. I expect trading on Dogecoin to continue to be incredibly volatile and unpredictable.