Blow to meme coins as Musk announced plans to step down as Twitter CEO

Twitter CEO and renowned meme coin proponent, Elon Musk, have revealed plans to exit from the giant social media platform’s high office. From the post, the incumbent CEO will be a lady, expected to start in around two months as Musk plans to transition into the executive chair and Chief Technology Officer (CTO) roles to spearhead the company’s product, software, and systems operations departments.

The decision could prove bearish for meme coins, considering the tremendous effort Musk has put into promoting this category of cryptocurrencies on the social media platform.

Also Read: Dogecoin Price: Investors concerned over DOGE overreliance on Twitter and CEO Elon Musk

Musk to dethrone from Twitter’s apex office

The decision to exit the CEO office is unsurprising, considering Elon Musk had indicated plans to reduce his involvement in the social media platform over time after he found the right person to take point. He assumed the CEO office in October 2022 after acquiring the giant platform for a staggering $44 billion.

The decision has sparked concerns over the future of meme coins as far as crypto Twitter is concerned.

Notably, ever since he assumed leadership, Musk has doubled down on promoting this crypto category, with one pronounced case being his recent move to switch the Twitter logo from the traditional bird to a Shiba Inu dog.

Commenting on the news, Kraken exchange said it was keen to see what Crypto Twitter would be under the leadership of the new CEO.

Following the announcement, Dogecoin (DOGE) price reacted with a downswing of almost 2% before a quick recovery to exchange hands at $0.072 at the time of writing. Other meme coins that responded to the news include Shiba Inu (SHIB) and Floki Inu (FLOKI), exchanging hands for $0.00000869 and $0.0000349, respectively, at press time.

DOGE/USDT 1-Hour Chart, FLOKI/USDT 1-Hour Chart, SHIB/USDT 1-Hour Chart

With a focus on the leading meme coin by market cap, Dogecoin price has fashioned a V-shaped recovery rally in the one-hour timeframe, as shown below. DOGE has flipped the $0.071 resistance level into support as bulls confront the 10-day Exponential Moving Average (EMA) at $0.072.

Sidelined investors buying DOGE at this level could fuel the bull run, sending Dogecoin price to tag the resistance confluence between the horizontal line and the 50-day EMA at $0.073. In a highly bullish case, the meme coin could extend a neck to tag the 200-day EMA at the $0.074 hurdle. Such a move would denote a 5% uptick from the current position.

The bullish outlook was supported by the Relative Strength Index (RSI), which had tipped upward, signaling a call to buy DOGE when it crossed above the signal line (yellow band). Traders heeding this call would solidify the bullishness for the leading meme coin.

Similarly, the Awesome Oscillators also flashed green and drew toward the positive zone, indicating a bullish resurgence.

DOGE/USDT 1-Hour Chart

On the downside, profit-taking could ensue as investors move to book profits at break-even rates. Such an outcome could see the Dogecoin price drop below the critical support at $0.071. The meme coin could drop toward the $0.069 swing low in the dire case.

Also Read: After Bitcoin and Dogecoin, Elon Musk could be preparing to influence AI crypto tokens now