Elon Musk has made another post referencing Dogecoin (DOGE), but the market reaction has been subdued. Social activity surrounding DOGE has noticeably declined, indicating the post has not triggered much discussion.
Over the past 24 hours, DOGE’s trading volume has only increased by 3%, reflecting the waning market interest in the meme coin.
Dogecoin Sees Minimal Reaction Following Musk’s Post
Through a series of posts that reference Dogecoin, Elon Musk continues to fuel speculation that he might join the Donald Trump administration if he wins the November US election.
In a September 7 post on X, the billionaire posted an AI-generated image featuring him and the acronym “D.O.G.E” and captioned it “Department Of Government Efficiency.” BeinCrypto reported that this led to an uptick in DOGE’s social activity and value.
However, Thursday’s post has not produced the same reaction. DOGE’s social dominance, which tracks the percentage of its online discussions compared to conversations about the top 100 cryptocurrencies by market capitalization, has maintained its downtrend. At press time, it sits at 0.37%
When an asset’s social dominance drops, it is discussed less frequently on social media platforms. The drop in DOGE’s social dominance suggests reduced interest or hype in the meme coin despite Musk’s post.
DOGE’s plummeting price daily active address (DAA) divergence supports this outlook. In fact, this metric, which measures an asset’s price movements with the changes in its number of daily active addresses, has fallen to a 30-day low of -62.46 post-Musk’s post.
Read more: How To Buy Dogecoin (DOGE) and Everything You Need To Know
Interestingly, despite low trading volume, Dogecoin price has seen a modest 3% surge in the past 24 hours. However, the negative price-DAA divergence suggests that the rally is weak and likely unsustainable.
DOGE Price Prediction: Coin Retests Key Moving Average
DOGE’s technical setup on a one-day chart signals a potential reversal of its current uptrend. As of this writing, the coin is retesting its 20-day exponential moving average (EMA) at $0.10. If this level fails to hold, DOGE will shed its recent gains.
Moreover, the meme coin’s Relative Strength Index (RSI) is at 50.61 at press time, signaling a relative balance between buying and supply pressures. If buying activity gains momentum, the retest will be successful, and Dogecoin may continue its uptrend to exchange hands at $0.13.
Read more: 10 Best Altcoin Exchanges In 2024
However, if coin distribution intensifies, Dogecoin’s price will revisit its August 5 low of $0.08.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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Abiodun Oladokun
https://beincrypto.com/dogecoin-unmoved-by-elon-musks-post/
2024-09-12 13:30:00
