DOGE Jumps 6% Following Elon Musk Apology to Trump: Who’s Driving the Frenzy?
This surge coincides with news that Elon Musk has publicly apologized to Donald Trump, a development that often correlates with renewed interest and volatility in the meme-inspired cryptocurrency. However, despite the price appreciation, market analysis is raising questions about the true drivers behind this latest buying frenzy.
As of recent data, Dogecoin’s price stands at approximately $0.2031, up from around $0.1909 yesterday. The cryptocurrency’s market capitalization has climbed to $30.39 billion, while its 24-hour trading volume has seen a notable increase to $1.57 billion. This increased volume suggests heightened activity, yet the nature of the buyers remains somewhat enigmatic.
Previous market observations, particularly from CryptoQuant’s analysis of “Spot Retail Activity Through Trading Frequency Surge,” highlight a critical point: the typical pattern of high trading frequency from “ant investors”—smaller, individual retail traders—that has historically accompanied Dogecoin’s major price tops, has not yet materialized in this current ascent.
While low levels of volume were successfully seen at the recent bottom (green), indicating a potential consolidation phase, the red zones representing fervent retail interest near peaks are conspicuously absent.
This divergence prompts the question: if the usual retail “ant” army isn’t leading the charge, who is buying? Several possibilities emerge:
- Institutional or Whale Activity: Larger, more sophisticated investors or “whales” could be making significant purchases, driving the price up with fewer, but larger, transactions. Their movements might not manifest as the high-frequency trading characteristic of individual retail investors.
- Algorithmic Trading: Automated trading systems could be reacting swiftly to the news involving Elon Musk, executing trades based on pre-programmed strategies, thus contributing to the volume.
- Short Covering: Traders who have bet against Dogecoin by “shorting” it might be forced to buy back the asset to cover their positions as the price rises, inadvertently adding upward pressure.
While Elon Musk’s association with Dogecoin continues to exert influence on its market performance, the current rally appears to be unfolding without the same level of widespread, high-frequency retail speculation that has fueled its most explosive prior surges. Market participants will be closely watching to see if “ant investors” eventually join the rally, or if this surge remains primarily driven by other, less visible forces.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
