DOGE, which has drawn a bad picture recently, reached the level of $ 0.072 during the day. So what is the current situation in DOGE, Elon Musk's favorite altcoin?
Dogecoin Hits $0.072 During the Day Despite Limited Interest
The latest increase in the value of Dogecoin coincides with the largest observed short selling activity in 2023, which occurred just six days ago.
Short selling is a trade where traders expect a decrease in price and take positions accordingly.
Such high short positions usually push the price up. Because the majority of investors are waiting for a decrease in price, whales are triggering the upward movement.
Despite the price surge and increased trading activity, general engagement and sentiment within the crypto community has remained stagnant. Because DOGE, which experienced an increase of 5 percent during the day, later lost these gains.
This suggests that the recent surge in Dogecoin may be due to speculative trading strategies and short-term recovery rather than widespread enthusiasm and organic demand.
First created as a joke in 2013, Dogecoin has had its share of ups and downs in the crypto market.
It garnered a lot of attention earlier this year due to endorsements from high-profile names like Elon Musk, but later faced a decline in interest and value.
In the current situation, it seems that the old excitement in DOGE, which is only moving with the statements of Elon Musk, is not over for now. Investors, especially those investing in DOGE, are waiting for an explanation from Elon Musk.
*Not investment advice.