Musk once again called for DOGE, why did the market react coldly? Did the halo of the king disappear, or did global funds run out of money?
Musk, the former world's richest man, has always had a soft spot for DOGE (Dogecoin). Every time he casually mentioned it on Twitter, the price of Dogecoin soared rapidly. However, this time, when Musk "called" for DOGE again, the market reaction was unexpectedly cold. Why has the former meme leader token lost its former glory now? Is DOGE's halo of the king gradually disappearing, or is the funds of global investors exhausted and unable to support the market?
Why did DOGE's "Musk effect" fail?
Musk and DOGE have been inseparable since 2020. Whenever he mentioned Dogecoin on social media, this cryptocurrency born from a joke would usher in a wave of increases. However, as time goes by, investors seem to have gradually lost interest in the "Musk effect". This cold reaction is likely to indicate that the market is no longer dependent on personal influence, but is more concerned about the actual value and market trends of the currency.
Is the halo of meme tokens disappearing?
Once upon a time, meme tokens such as DOGE and SHIB rose rapidly with the power of the community and the spread of social media. However, as the market matured, investors gradually realized that it is difficult for currencies driven by emotions and hype to maintain high valuations in the long run. Although DOGE still retains its leading position in meme tokens, its halo of kingship has gradually dimmed. More and more investors are turning to cryptocurrencies with stronger technical foundations and practical application scenarios. DOGE's future may face more severe challenges.
Global funds are exhausted and investors are unable to support it?
Not only DOGE, but the entire crypto market has shown a weak trend in recent months. On the one hand, the uncertainty of the global macro-economy, inflation, high interest rates and other factors have made the flow of funds conservative, and investors are more inclined to invest in assets with lower risks. On the other hand, the downward trend of the crypto market has also caused many investors to choose to leave and wait and see. The market liquidity is insufficient, and the funds are obviously not enough to support large-scale price fluctuations.
