Dogecoin (DOGE) has been making headlines yet again, but this time it’s not for soaring to the moon. Instead, it appears that DOGE is caught in what the industry calls a “crab market.” This term describes a situation where the price of an asset remains relatively stable within a narrow range, making it challenging for traders to anticipate significant price movements.
A crab market, also known as a sideways market or consolidation phase, is a situation where a cryptocurrency’s price remains relatively stable within a narrow range, resembling the sideways movement of a crab. In other words, the price neither surges significantly nor experiences substantial declines.
Dogecoin, a digital currency that once rode the waves of social media hype and celebrity endorsements, now seems to be stuck in this frustratingly stable pattern.
Dogecoin Crab Market Challenges: Low Trading Volume
Dogecoin made an attempt to break free from this level of stagnation on August 30th, but it fell short of any substantial gains. With its current price hovering around $0.064248 according to CoinGecko, the cryptocurrency community is eagerly awaiting a breakout.
A key indicator of the crab market scenario is the trading volume, and right now, Dogecoin is experiencing moderate trading activity. This tepid trading volume indicates that DOGE remains in the danger zone of prolonged stagnation. To escape this pattern, cryptocurrencies often require a surge in trading volume, a catalyst that can propel them to new heights.
As of today, the market cap of DOGE reached $8.9 billion. Chart: TradingView.com
The Elon Musk Factor
Interestingly, a minor spike in DOGE’s price can be attributed to an unexpected source – the upcoming biography of Tesla CEO and X owner, Elon Musk. Set to be published on Sep. 12, this highly-anticipated book is expected to reveal Musk’s discreet financial contributions to the development of the popular meme coin.
Walter Isaacson, the author of the forthcoming biography, disclosed that Musk “quietly funded” Dogecoin and even contemplated the creation of a blockchain-based social media platform. These revelations are poised to be unveiled within the pages of the book.
Musk’s affection for Dogecoin has been no secret in the past. In a tweet from August, Musk responded to a post on X by his mother, Maye Musk, affirming that “X” is indeed a DOGE-friendly place.
As the cryptocurrency world watches and waits, hoping for a break from the crab market, it seems that even in moments of relative stillness, DOGE has found a way to capture the spotlight, courtesy of the ever-quirky and influential Elon Musk.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from Agri Farming