Earlier today, Dogecoin (DOGE) experienced a price pump after Elon Musk replied to a question on Twitter. The Tesla CEO is known for influencing the price of Dogecoin by occasionally tweeting about it which in turn boosts the price of the token.
In a sudden spike, the coin witnessed a 3% increase in value, rising from $0.07 to $0.073 in one minute. This action was triggered when Elon Musk responded to a question on Twitter.
A user @Eva McMillan asked a question about which pet is loved more, between dogs or cats. Musk replied to this question by simply writing “Doges” which implies Dogs.
Doges
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— Elon Musk (@elonmusk) July 17, 2023
His response was enough to quickly impact the price of the token by sending it up 3% in just one minute. Almost immediately, the Doge market was saturated with a large volume of transactions. These large volumes of trades can be attributed to trading bots that are automatically programmed to function and seize any mention of Doge by Elon Musk.
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The Dogecoin community on Twitter flooded in with comments under Elon Musk’s reply with pictures, videos, and GIFs of Dogecoin, signifying excitement at the mention of the memecoin.
Lol every time Doge is mentioned 🤣 pic.twitter.com/bvbnwOrQJG
— Nikhil (@Alloutnikhil) July 17, 2023
The pump was short-lived
However, the hype did not appear to last long as just after a minute of the surge, the price went plummeting almost as rapidly. Surprisingly, after 3 hours of the spike, the price of Doge has dropped by 3.4%. This drop totally cleared the initial pump and left the price of Doge slightly lower than it was before the tweet.
The short price pump clearly proves how memecoins are influenced by community sentiment, celebrity influences, and hypes. Memecoin can be an attractive option for investments especially because of its low entry price and the possibility of getting massive gains within a short time, but ultimately it is important to remember that they are very highly volatile assets, and your money can be lost almost as fast as you gain.
Dogecoin (DOGE) price today
Source: CoinMarketCap
According to live data from CoinMarketCap, the price of Dogecoin today is $0.069. Doge is down 3.43% in the last 24 hours. What’s more, Dogecoin is the most popular memecoin and it is ranked #9 on the global cryptocurrency market chart. Finally, it has a live market cap of $9,686,946,854 ($9 billion).
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications such as Coinfomania and Crypto News Guru, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.