Why among so many coin projects, Tesla CEO, Elon Musk decided to choose DOGE and push the Dogecoin price pump?
Have you ever wondered why Dogecoin price has been pumped so strongly these days? Why among so many coin projects, Tesla CEO, Elon Musk decided to choose DOGE?
Here’s why Dogecoin price is pumped so strongly and shows such high demand from the market
First, let’s talk about Elon Musk. In it, the reason Musk shill Doge is not because of the money. The main reason is probably that Musk wants people to know more about cryptocurrencies and see opportunities to make profits from here. And so, Bitcoin and Dogecoin are the two best options right now. One is the largest cryptocurrency in the market, which is already very popular. Dogecoin, meanwhile, is a very accessible and interesting project and the purpose it was created is also extremely humorous.
In-depth analysis, the crypto analyst and influencer Coin Bureau came up with four reasons for the current insane demand for Dogecoin:
- Meme Culture (“simplicity sells”)
- Social Media (“some of the biggest trends for $DOGE have been over on TikTok”)
- Elon Musk (Elon Musk wants to “send $DOGE to the moon”; “you can almost perfectly track the price pumps in DOGE to his tweets about it”; “a mere tweet of a dog by Elon can make the DOGE price pump”)
- Robinhood
After that, he went on to explain why people are so desperate to increase DOGE prices. First, some people are genuinely having fun. They love the community and enjoy the memes. This is the category that we think Elon Musk falls into.
Accordingly, another type of DOGE trader is those that are trying to make money on its pumps. There are some in this category who have made millions doing so.
And the final investment point is, some other investors think that Dogecoin can really become a global currency and overtake Bitcoin.
And finally, the crypto analyst ended the video with closed thoughts on Dogecoin:
“DOGE is a really fascinating cryptocurrency. I will admit that I never expected it to reach this level, and I have to say that I am impressed. Despite having some pretty simplistic crypto tech, it has captured the attention of millions of users who otherwise would not have been using crypto…”
He added:
“I also can’t stand here and say that the trend won’t continue. Parabolic price action can be irrational, and I sure as hell won’t be shorting DOGE… but there will come a time when larger holders take profit, and this will lead to a collapse in price. It’s merely logical… The community is cool and dynamic, and I love its enthusiasm. However, many are investing with real money, and when they lose it, it won’t be a joke.”
According to CryptoCompare data, Dogecoin price is currently trading around $ 0.2661, down 4.71% over the past 24 hours, down more than 27% over the past seven days.
Disclaimer: Opinions expressed at AZCoin News are not investment advice. Investors should do their due diligence before making any high-risk investments in cryptocurrencies. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. AZCoin News does not recommend the buying or selling of any cryptocurrencies.
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