In the ever-changing world of cryptocurrencies, Dogecoin (DOGE) has recently shown spectacular performance. In a short time, its price surged from $0.1909 to $0.2031, and its total market value strongly broke through, climbing to $30.39 billion. The trading volume was astonishing, soaring to $1.57 billion within 24 hours, igniting market enthusiasm in an instant. At first glance, this seems to be a typical price increase driven by market sentiment, but a deeper investigation reveals undercurrents and complexities behind it.
This dramatic price surge coincided with Elon Musk making a stunning move—rarely publicly apologizing to Trump. This event instantly exploded in the public discourse, becoming a focal point of global attention, and Dogecoin was subsequently thrust into the spotlight. Logically, some might think this is just another 'frenzy' from retail investors, as Dogecoin has always been favored by retail groups, and Musk has repeatedly endorsed Dogecoin, making the power of his fans and retail investors significant.
However, the actual situation is not that simple. Data shows that the enthusiasm for retail trading has not reached the historical highs of those crazy rising periods; the so-called 'ant investors,' representing the vast majority of retail investors, do not seem to have entered the market on a large scale yet. This raises the question: if it is not the power of retail investors, then who is driving this astonishing increase in Dogecoin?
The true 'manipulators' may be hiding behind the scenes. On one hand, institutional funds and large investors, often referred to as 'whale' investors, have a vastly different trading style compared to retail investors. These well-capitalized players usually employ low-frequency, high-value trading strategies. They subtly position themselves, and once the timing is right, they can exert a tremendous impact on the market. On the other hand, automated trading systems also play a crucial role. In today's financial markets, automated trading is quite common, and these systems exhibit a high sensitivity to news information. When the significant news of Musk apologizing broke, automated trading systems quickly captured this information and began precise operations under programmed settings, continuously striking against short positions. Faced with this sudden attack, short sellers opted to capitulate and close their positions, while short covering further pushed prices up, creating a chain reaction.
This is by no means a simple, chaotic price rise, but rather an organized, premeditated, and well-supported 'pump' operation. Currently, Dogecoin is at a critical juncture, and it remains to be seen whether retail investors will be attracted by this wave of rising prices and 'bite' to enter the market, thus creating a true speculative frenzy. However, it cannot be ruled out that more powerful forces are laying the groundwork behind the scenes, with larger players yet to emerge, leaving everything shrouded in uncertainty.
The storm in the cryptocurrency market has just begun. In this thrilling and risky game, are you ready?#dog 