- Elon Musk’s determination to take away Dogecoin’s brand brought on its worth to plummet by 23% in days.
- This sudden reversal in market dynamics has led to many questioning Musk’s intentions and the way forward for DOGE.
In a twist of occasions, Elon Musk eliminated the Twitter canine brand that has turn into synonymous with Dogecoin [DOGE]. Whereas all good issues should come to an finish, this specific ending has had a noticeable influence on DOGE’s worth, inflicting concern amongst buyers and fans alike.
Learn Dogecoin’s [DOGE] Worth Prediction 2023-24
Away from the canine, again to the chook
Just a few days in the past, Twitter customers awoke to seek out that Elon Musk had pulled one other one in all his trademark shocks by altering the blue chook emblem to that of a canine. The group surrounding Dogecoin and related cash interpreted this as an endorsement, driving costs skyward.
The looks of the Dogecoin brand on Twitter was simply as sudden as its elimination, and the response from customers was equally swift. However whereas every part appeared to return to the best way it was earlier than, there was one notable exception: the worth of Dogecoin didn’t comply with swimsuit.
Dogecoin worth plummets
The worth of DOGE skilled a sudden spike on 3 April, coinciding with the brand change. Nevertheless, the next days witnessed a shift in market dynamics, with promote stress gaining prominence, and consequently, the worth started plummeting. A look on the worth vary software reveals a drastic 23% drop in worth as of this writing. Buying and selling at round $0.8 at press time, the cryptocurrency has incurred a lack of over 3%.
Supply: TradingView
The Relative Energy Index (RSI) line corroborated the sudden drop, signifying a speedy downfall of the bullish pattern. As of this writing, the RSI line was on the cusp of breaching the impartial line and will sink additional if the worth stored falling. Whereas the lengthy and quick Transferring Averages have been offering help, it stays to be seen how lengthy they might maintain this.
Reversals in different metrics
On 6 April, the 30-day Market Worth to Realized Worth ratio (MVRV) stood at 2.48%, indicating a wholesome valuation of Dogecoin. Nevertheless, the state of affairs took a U-turn in simply three days, with the MVRV dropping drastically under the zero line to round -0.77%.
Supply: Santiment
Is your portfolio inexperienced? Take a look at the Dogecoin Revenue Calculator
Along with the worth and MVRV, the amount metric additionally witnessed a stark reversal. Beforehand, the amount had surged to roughly 170,000, but it surely has dropped to round 130,000. The drop steered that the shopping for stress had weakened, and sellers had gained management, resulting in a decline in demand for Dogecoin.
Supply: Santiment
In one other current flip of occasions, a bunch of Dogecoin buyers filed a lawsuit towards Elon Musk, alleging that he had promoted DOGE as a Ponzi scheme. Elon, alternatively, has maintained his innocence.
