Dogecoin Surges on Social Engagement Linked to Elon Musk’s Twitter Posts
Dogecoin (DOGE) has seen significant price movements in April, with gains directly linked to tweets from Tesla CEO Elon Musk. While this social engagement has been positive, the technical structure of DOGE suggests that a retracement could be likely. However, Bitcoin’s potential rally could keep DOGE’s price surging higher.
Elon Musk’s Twitter Posts Boost DOGE’s Social Engagement
Lack of Buying Pressure Behind DOGE Suggests Retracement
Bullish Order Block Remains Unbroken
Increased Selling Pressure Highlighted by Decreasing Coin Age
Potential for DOGE’s Surge to Continue with Bitcoin’s Rally
Elon Musk’s Twitter Posts Boost DOGE’s Social Engagement:
DOGE’s social engagement surged on two separate occasions in April, both directly linked to tweets from Elon Musk. Musk offered 1 million DOGE to anyone who could prove they owned an emerald mine, resulting in a 4.9% gain in DOGE. His announcement of changing the Twitter logo to the Shiba Inu dog saw DOGE shoot upward by 30%.
Lack of Buying Pressure Behind DOGE Suggests Retracement:
While the technical structure of DOGE remained bullish on higher timeframes, there was a lack of buying pressure behind the meme coin. The bearish order block at $0.095 has yet to be broken, and the OBV sank extremely deep after the brief foray above $0.1. This divergence means that buyers should be cautious, and sellers can wait for a break in structure on lower timeframes before entering short positions.
Bullish Order Block Remains Unbroken:
DOGE has formed a series of higher lows and higher highs since its recovery above $0.072 on 14 March. The $0.07 area has been flipped to support once again, and the OBV showed some demand from March to early April. The bulls briefly held above $0.1, but sellers soon began to dominate.
Increased Selling Pressure Highlighted by Decreasing Coin Age:
Santiment data shows that the 90-day mean coin age has slowly slid downward since mid-March, highlighting increased selling pressure due to heightened activity in coin transfers on the network. However, the 30-day MVRV ratio remains close to zero and does not indicate a threat from profit-takers. Daily active addresses have increased in the past two weeks, especially after Elon Musk replaced the Twitter bird icon with a Shiba Inu dog.
Potential for DOGE’s Surge to Continue with Bitcoin’s Rally:
Bitcoin could continue to rally toward $32k or higher, which could cause DOGE to surge higher as well. This potential rally should be kept in mind by bears seeking to enter short positions.
Conclusion:
While DOGE has seen significant price movements due to social engagement linked to Elon Musk’s tweets, the lack of buying pressure and increased selling pressure suggests a potential retracement. However, Bitcoin’s rally could keep DOGE’s price surging higher, and sellers should wait for a break in structure on lower timeframes before entering short positions.
Hey, it's CryptoPatel here!
I'm passionate about providing you with the latest insights and analysis on the world of cryptocurrencies.
If you enjoy my content and want to show your support, please like, share, and follow me for more high-quality updates.
Thank you for your support, and let's continue to stay connected for more exciting content!
LIKE ❤️
Share ⏩
Follow 🤝
