Dogecoin: Dependency on Twitter spurs volatility, investors concerned
In a twist of events, Elon Musk removed the Twitter dog logo that has become synonymous with Dogecoin [DOGE]. While all good things must come to an end, this particular ending has had a noticeable impact on DOGE’s value, causing concern among investors and enthusiasts alike.
Read Dogecoin’s [DOGE] Price Prediction 2023-24
A few days ago, Twitter users awoke to find that Elon Musk had pulled another one of his trademark shocks by changing the blue bird emblem to that of a dog. The community surrounding Dogecoin and similar coins interpreted this as an endorsement, driving prices skyward.
The appearance of the Dogecoin logo on Twitter was just as sudden as its removal, and the reaction from users was equally swift. But while everything seemed to return to the way it was before, there was one notable exception: the price of Dogecoin did not follow suit.
The value of DOGE experienced a sudden spike on 3 April, coinciding with the logo change. However, the following days witnessed a shift in market dynamics, with sell pressure gaining prominence, and consequently, the value began plummeting. A glance at the price range tool reveals a drastic 23% drop in value as of this writing. Trading at around $0.8 at press time, the cryptocurrency has incurred a loss of over 3%.
Source: TradingView
The Relative Strength Index (RSI) line corroborated the sudden drop, signifying a rapid downfall of the bullish trend. As of this writing, the RSI line was on the cusp of breaching the neutral line and could sink further if the price kept falling. While the long and short Moving Averages have been providing support, it remains to be seen how long they could sustain this.
On 6 April, the 30-day Market Value to Realized Value ratio (MVRV) stood at
Read more on ambcrypto.com
