Meme token Dogecoin (DOGE) has recently experienced an extended sell-off in line with the general crypto market. The patch was extended earlier this week after Elon Musk announced that he would step down as CEO of Twitter once he found an ideal replacement.
However, the token shrugged off the overall bear market situation by posting minor gains marked by capital inflows. In fact, at the time of publication, Dogecoin is trading at $0.08 with a gain of about 3% in the last 24 hours.
Meanwhile, the eighth-ranked cryptocurrency by market capitalization recorded nearly $460 million in capital inflows within a single day. At the time of publication, DOGE has a market capitalization of $10.17 billion.
Dogecoin and Musk’s relationship
It should be noted that Dogecoin has a history of being sensitive to Musk’s tweets. Notably, following Musk’s acquisition of Twitter, the token soared amid speculation that DOGE could be integrated as a payment option on the social network.
Accordingly, since the announcement of Musk’s imminent departure from Twitter management, investors have been focusing on DOGE’s next price movement. Notably, the CEO of Tesla (NASDAQ: TSLA) revealed that he intends to focus on leading the software and servers teams.
Amid the recent correction, Dogecoin whales have been piling up. According to data from crypto analytics platform Santiment, Dogecoin is processing approximately 100,000 to 1,000,000 coins representing about 6% of the network’s total supply, the highest value in nearly six months.
What’s next for DOGE?
After DOGE’s recent gains, the digital asset is showing upward momentum though it has been difficult to find massive price action in recent weeks. At the current price, DOGE is trading above the $0.075 support and set the resistance at $0.085.
Despite Dogecoin’s relief rally, the technical analysis persists TradingView Predominantly bearish. The summary of daily metrics corresponds to a “sell” bias at 13, while the moving averages recommend “strong sell” at 12.
Going forward, it should be noted that meme currency remains vulnerable to general market conditions. In fact, the asset was affected by the fallout from the collapse of the cryptocurrency exchange FTX.
In the meantime, Dogecoin investors are hoping for a continuation of the current rally with expectations that are in line with the bullish outlook. As reported by Coinphony, a machine learning algorithm has predicted that DOGE will be trading at $0.079835 on January 1, 2023.
Meanwhile, it remains to be seen 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. In this line, DOGE is likely to be characterized by bullish sentiment.
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