Meme token Dogecoin (DOGE) has recently experienced an extended sell-off in line with the general crypto market. The correction was extended early this week after Elon Musk announced that he would step down as the CEO of Twitter once he finds an ideal replacement.
However, the token has ignored the overall market bearish sentiment by recording minor gains characterized by capital inflow. Indeed, by press time, Dogecoin was trading at $0.08 with gains of about 3% in the last 24 hours.
At the same time, the eighth-ranked cryptocurrency by market capitalization recorded about $460 million in capital inflows within a day. By press time, DOGE had a market capitalization of $10.17 billion.
Dogecoin’s relationship with Musk
It is worth noting that Dogecoin has a history of being sensitive to Musk’s tweets. Notably, following Musk’s acquisition of Twitter, the token surged amid speculations that DOGE might be incorporated as a payment option on the social media network.
Consequently, since the announcement of Musk’s imminent exit from the helm of Twitter, investors have been focusing on DOGE’s next price movement. Notably, the Tesla (NASDAQ: TSLA) CEO revealed that he intends to focus on leading the software and server teams.
Amid the recent correction, Dogecoin whales have been on an accumulation spree. According to data from the crypto analysis platform, Santiment, Dogecoin addresses with 100,000 to 1,000,000 coins account for about 6% of the network’s total supply, the highest value in almost six months.
What next for DOGE?
Following DOGE’s recent gains, the digital asset is exhibiting a bullish momentum despite struggling to find a formidable price movement in recent weeks. At the current price, DOGE is trading above the $0.075 support setting the resistance at $0.085.
Despite Dogecoin’s relief rally, the technical analysis on TradingView is dominantly bearish. A summary of the daily gauges aligns with the ‘sell’ sentiment at 13, while moving averages recommend ‘strong sell’ at 12.
Moving forward, it is worth noting that the meme coin remains susceptible to general market conditions. Indeed, the asset has been impacted by the fallout from the FTX cryptocurrency exchange collapse.
In the meantime, Dogecoin investors will be hoping for a continuation of the current rally with forecasts aligning with a bullish outlook. As reported by Finbold, a machine learning algorithm has predicted that DOGE will likely trade at $0.079835 on January 1, 2023.
At the same time, it remains to be seen how Musk’s sentiments impact DOGE, with investors hoping the token will be added as a payment option on Twitter in the new year. In this line, DOGE is likely to be characterized by a bullish sentiment.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.