Behind DOGE’s rally to $0.10, whale reactions, and more
- Elon Musk gifted the Dogecoin community by changing the Twitter logo to that of Dogecoin.
- Whales and retail segments reacted by buying DOGE aggressively.
On 4 April, Dogecoin [DOGE] experienced its largest single-day price spike since October 2022. The reason for the price hike and robust demand within the last 24 hours is heavily linked to a recent change on the Twitter microblogging platform.
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In the last few hours, Dogecoin’s logo replaced the blue bird that has been Twitter’s mascot for a long time. While this is a surprising change, it was not unexpected, considering Elon Musk’s status as Dogefather.
— Elon Musk (@elonmusk) April 3, 2023
More importantly, this recent change may revive chatter about Twitter potentially adopting Dogecoin for transactions within its network. Dogecoin becoming Twitter’s new logo or mascot highlights a higher likelihood of Twitter using DOGE for transaction purposes.
Such a development would likely supercharge the DOGE’s mass adoption.
DOGE bulls react positively
DOGE’s price action delivered a 36% upside during Monday’s trading session. Most of the upside was caused by the robust liquidity inflow that came after Twitter changed the logo. This was confirmation that many saw the move as a bullish outcome for Dogecoin.
Dogecoin briefly soared above the $0.10 price after struggling to reclaim that level for the last four weeks. However, this also means it retested a previous resistance level and the effects of that are already manifesting in its price performance.
On top of that, DOGE’s rally firmly pushed into overbought territory, where many are likely to take profits.
As far as on-chain observations are concerned, Twitter’s logo changed triggered a surge in investor optimism. This is evident by the spike in DOGE’s weighted sentiment as well as its social dominance, which rose sharply on Monday before eventually cooling down.
Similarly, the last 24 hours were characterized by an uptick in whale transaction count. This may explain the large price move which was driven by whale accumulation. The retail segment also participated in the rally, hence the spike in active addresses to a monthly high.
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It is unclear whether this logo change will be followed up Twitter’s adoption of DOGE as a transaction medium. Nevertheless, the change is a white swan event for the Dogecoin community, after which profit-taking is likely to wipe out some recent gains.
On the other hand, the event may trigger more confidence and potentially encourage more accumulation.