Under the influence of Elon Musk, Dogecoin saw a sudden and dramatic increase of 3% in just one minute. However, the altcoin price then rebounded at some point, completely wiping out the gains.
Elon Musk triggered the DOGE pump with a single tweet!
The meme-coin Dogecoin (DOGE) price spiked, seeing a vertical 3% rise today. During this process, DOGE rose from $0.07 to $0.073 in just one minute. So what was the catalyst behind this explosive price action? Of course, the enigmatic billionaire and key figure of Tesla, SpaceX and Twitter was Elon Musk.
Known for his playful interactions with the crypto community, Musk gave a simple but effective response to a question on Twitter about his choice of cat or dog: “Dogs.” This seemingly innocuous response was enough to ignite a sharp pumping in the price of the altcoin DOGE.
Do you like more dogs or cats? 😍 pic.twitter.com/NXzMMlsiRX
— Eva McMillan ♥️ (@EvasTeslaSPlaid) July 17, 2023
Almost instantly, massive volumes of transactions, triggered by what appeared to be automated buying bots meticulously programmed to catch any mention of Dogecoin by self-proclaimed “Dogefather” Elon Musk, flooded the DOGE market. However, cryptocoin.com As you can see from , the life of the pump was short-lived. Just one minute after the vertical candle appeared on the DOGE price chart, it faded just as quickly. Surprisingly, just three hours after the tweet, the altcoin price dropped over 5% at one point. Thus, it effectively eliminated the entire pump. With this pullback, DOGE price slipped into the red zone.
‘Musk effect’ on Dogecoin
This unexpected turn of events could serve as a cautionary tale to suggest that trying to trade Dogecoin based on Musk’s tweets or news is a futile exercise. The patterns that emerge from such transactions are highly predictable. Therefore, it is hardly possible to compete with lightning-fast trading bots that take advantage of such trends.
It is important to be careful when making investment decisions based on social media posts or the actions of influential people. Musk’s tweets have had a notable impact on the crypto market in the past. However, the volatile nature of cryptocurrencies and the involvement of automated trading bots make it difficult to profit from these trends on a consistent basis.
Experts find it beneficial for investors and traders to approach the cryptocurrency market with a long-term perspective. He also recommends doing extensive research and analysis before making any decisions. Short-term price movements triggered only by social media activities often cause disappointment. Therefore, it is possible for such moves to result in financial losses.
