Here’s why DOGE not pumping on Elon Musk is good for crypto market
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Elon Musk’s comments yesterday did not significantly pump up the Dogecoin price, which seems like a good sign. Thus, the eccentric billionaire, while holding a live conference on Twitter Spaces, assured listeners that he is working on the future of Dogecoin, and also exclaimed the phrase that has become a meme: “DOGE to the moon.” After these words, the price of the memecoin rose by almost 14% in two hours, but the momentum was sold off and did not gain further traction.
Why is this a good sign? The fact is that every previous time, DOGE pumping was a harbinger of a major correction on the crypto market. Of course, it can hardly be called a pattern, but the fact is obvious. What’s interesting is that Dogecoin’s late October surge of 100% or more due to Musk’s purchase of Twitter occurred a week before the collapse of the infamous FTX exchange, which reduced the overall crypto market capitalization by more than 20% in two days.
Fearful and exhausted
The fact that DOGE has not pumped up from Musk’s remarks is also quite eloquent in describing the current crypto market environment. It seems clear that the market is exhausted — sellers have sold out after the FTX crash, buyers are mostly fearful and stick to wait-and-see tactics.