Dogecoin (DOGE) price shot up today by 3% in a quick burst, rising from $0.07 to $0.073 per DOGE in less than a minute. What was the cause of this sharp price movement? None other than Elon Musk, the mysterious billionaire and well-known face of Twitter, SpaceX, and Tesla.
Musk, who is known for his lighthearted engagements with the crypto community, reacted to a query on Twitter about whether he prefers dogs or cats with a direct but powerful response: “Doges.” This unassuming answer was sufficient to cause the price of the titular token to spike sharply.
The self-proclaimed “Dogefather” himself, Elon Musk, appears to have set off automatic purchasing bots that were carefully trained to grab any mention of Dogecoin, causing a near-instantaneous wave of deals to hit the DOGE market.
The pump, however, turned out to be transitory. On the DOGE price chart, the vertical candle emerged about a minute later and deflated equally quickly. Surprisingly, just three hours after the tweet, Dogecoin’s price plunged by over 5% at one point, thus ending the pump and leaving the token a few percentage points lower.
Too simple
This unexpected turn of events might be taken as a lesson, indicating that trying to trade Dogecoin based on Musk’s tweets or news is pointless. In order to compete economically with lightning-fast trading bots that effortlessly take advantage of such trends, it is becoming more and more likely that one will wind up in the red due to the patterns that develop from such trades, which are all too predictable.
