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Elon Musk's Tweet Sets Dogecoin (DOGE) on Fire: Craze and Fade in Mere Minutes

Wed, 08/23/2023 - 12:28
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Gamza Khanzadaev
DOGE eyes explosive 81,300% volume surge thanks to eccentric X owner
Elon Musk's Tweet Sets Dogecoin (DOGE) on Fire: Craze and Fade in Mere Minutes
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In the latest chapter of the ever-evolving saga between billionaire entrepreneur Elon Musk and the world of cryptocurrencies, Dogecoin (DOGE) has once again found itself at the heart of a whirlwind of activity. Musk, known for his eccentricities and influential Twitter presence, sent shockwaves through the crypto market with a single tweet, igniting a frenzy around the meme-inspired coin.

The effect was immediate and staggering. Trading data from Binance, the world's largest crypto exchange, revealed an eye-popping 81,300% surge in DOGE trading volume against USDT within the span of just one minute. This astronomical increase translated to a jaw-dropping 40.379 million Dogecoins changing hands. Interestingly, a deeper analysis of the Buying Selling Volume indicator unveiled a distinct pattern: 25.69 million coins were snapped up by eager investors, while the remaining portion was swiftly offloaded.

Source: TradingView

The aftermath of Musk's tweet propelled DOGE to a 2.57% surge in quoted prices. Yet, this bullish momentum was short-lived as the cryptocurrency's value plummeted by a staggering 80% within a mere hour.

Can Dogecoin (DOGE) Spark Long-Awaited Altcoin Rally?

This roller coaster ride serves as a stark reminder of the perils of relying on Musk's social media activity as a viable trading strategy. The recurring pattern observed in such instances has become a red flag for seasoned traders, suggesting a higher probability of losses. Adding to this complexity are lightning-fast trading bots that exploit these discernible trends with precision.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.