- After one of the biggest pumps in crypto history, it seems that the DOGE hype is dying.
- Elon Musk gave an ultimatum to DOGE whales to vacate their positions.
- The social volume of Dogecoin has significantly declined over the past two weeks.
In his last tweet about Dogecoin, Elon Musk gave an ultimatum to Dogecoin whales to vacate their positions. Musk believes that DOGE is great and will ‘fully support it’ if the concentration of large holders goes down.
Interest in Dogecoin diminishes, but is this bad?
According to a recent report by Santiment, the social volume of Dogecoin has greatly decreased in the past two weeks after an initial peak, thanks to the first few Elon Musk tweets supporting the digital asset.
DOGE Social Volume
The interest in Dogecoin has certainly faded away but does that mean DOGE is bound to see another correction? According to the report, yes, because the social volume and trading volume have formed a clear divergence with the price.
This pattern, which doesn’t happen too often has reliably predicted tops in the past. Additionally, judging by the ultimatum of Elon Musk, it’s unlikely that we will see Dogecoin whales vacate their positions in order to decentralize the network more.
Dogecoin price next step could be a fast run to $0.067
On the 9-hour chart, Dogecoin has established a descending parallel channel and just defended the lower boundary. The TD Sequential indicator has just presented a buy signal which gives the upper hand to the bulls in the short-term.
DOGE/USD 9-hour chart
A breakout above the key resistance level at $0.061 which coincides with the 26-EMA can quickly push Dogecoin price up to $0.067, a 10% move calculated by using the height of the pattern as a reference point.
DOGE IOMAP chart
However, the In/Out of the Money Around Price (IOMAP) chart suggests that a breakdown is more likely as there is a lot of resistance above $0.053 for Dogecoin. Only one key support area is located between $0.0489 and $0.05, losing this range can easily push Dogecoin rice down to $0.045.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.