Dogecoin Experiences Short Price Pump Following Elon Musk Tweet

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Dogecoin Experiences Short Price Pump Following Elon Musk Tweet

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.

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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.

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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

Dogecoin Experiences Short Price Pump Following Elon Musk Tweet

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).

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Victor Nnamdi Igbor "Swaezy" is a crypto enthusiast and writer with over 8 experience in blogging. He is an easy person and when not working, loves to have a good time.