The meme token Dogecoin (DOGE) has recently experienced a prolonged sell-off in line with the overall crypto market. The fix was extended earlier this week after Elon Musk announced he would step down as Twitter’s CEO once he finds an ideal replacement.
DOGE price analysis after Elon Musk becomes Twitter CEO!
However, the token has ignored the overall market bearish trend, posting small gains characterized by capital inflows. Indeed, according to press time, Dogecoin was trading at $0.08, up nearly 3% in the last 24 hours.
Dogecoin one-day price chart. Source: Finbold
At the same time, the eighth-ranked cryptocurrency by market cap registered about $460 million in capital inflows in one day. At press time, DOGE had a market cap of $10.17 billion.
Dogecoin one-day market cap chart. Source: CoinMarketCap
Dogecoin’s relationship with Musk
It’s worth noting that Dogecoin has a history of being sensitive to Musk’s tweets. Particularly after Musk’s acquisition of Twitter, the token has risen amid speculation that it could be included as a payment option on DOGE’s social media network.
As a result, investors have been focusing on DOGE’s next price action since it was announced that Musk would soon be leaving Twitter management. In particular, the Tesla CEO announced that he plans to focus on leading the software and server teams.
In the midst of the recent correction, Dogecoin whales are going on a saving spree. According to data from crypto analytics platform Santiment, Dogecoin addresses with 100,000 to 1,000,000 coins account for around 6% of the network’s total supply, which is almost a six-month high.
Dogecoin address holding. Source: Santiment.
What’s next for DOGE?
Following DOGE’s recent gains, the digital asset has been showing bullish momentum despite having struggled to find massive price action in recent weeks. At the current price, DOGE is trading above the $0.075 support, which marks the resistance at $0.085.
Meanwhile, Dogecoin traders will be hoping the current rally will continue, with forecasts in line with the bullish outlook. A machine learning algorithm predicted that DOGE would likely trade at $0.079835 on January 1, 2023.
At the same time, it’s unclear how Musk’s sentiments will affect DOGE, as investors hope the token will be added as a payment option on Twitter in the new year. Along this line, DOGE is likely to be characterized by a bullish sentiment.
Disclaimer: The content on this site should not be considered as investment advice. Investment is speculative. When investing, your capital is at risk.
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