Dogecoin prices surge as traders await Musk’s next move

• DOGE’s volume rose and its price also followed in the same direction.
• The coin price could reverse its momentum if open interest on exchanges continues to rise.

The trading volume of Dogecoin [DOGE] tapped its highest in the last sixteen weeks, data from Santiment revealed. In general, a high trading volume indicates stable liquidity, and most of the time, leads to fewer price fluctuations.

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The crowd joins the party

However, DOGE’s volume was not the only one that increased. The meme’s price also joined the party, rising by 8.26% in the last 24 hours. Typically, rising volumes on declining prices indicate waning momentum and potential reversal. 

But when the trading volume rises alongside the price like DOGE, then it indicates increasing momentum and potential to maintain the hike.

Interestingly, this came at a time when Elon Musk was rebranding Twitter to X, leading to speculation if DOGE was still in Musk’s plans. There have, however, been some comments regarding the matter.

For instance, pseudonymous crypto trader CryptoKaleo opined that DOGE could be integrated with Twitter in a few weeks. He went ahead to note that if DOGE cools off from the current increase, then it’s only a matter of time before the coin price rises again.

If I had to guess, Elon takes another few days, maybe even another few weeks to actually say how he plans on integrating DOGE into X.

I think there’s a solid chance he actually does something this time though, and him including it in his bio at the same time as the X rebrand…

— K A L E O (@CryptoKaleo) July 25, 2023

As per the weighted sentiment between 17 and 24 July, Santiment showed that it has been increasing. The weighted sentiment considers the unique social volume linked to an asset.

When the metric is positive, it means that the average commentary about the asset is optimistic. But when it’s negative, it implies that the average sentiment isn’t necessarily enthusiastic.

At -0.45, DOGE’s weighted sentiment was still gloomy. But the consistent increase over the last few days suggests that market participants were switching from the red side to the green area.

Same participants but increasing hype

In terms of active addresses, on-chain data revealed that the metric had hovered around the same range since 17 July.

This means that the number of distinct addresses participating in sending and receiving DOGE was almost the same.

When it comes to social dominance, Dogecoin has tremendously increased. At press time, the Dogecoin social dominance was 3.704%.

As an indicator used to measure hype, social dominance shows the share of discussions an asset has over others in the market. And since Dogecoin’s social dominance increased, it means that the conversation about the meme was increasing.

How much are 1,10,100 DOGEs worth today?

However, traders may want to watch out for the open interest on exchanges. At the time of writing, the open interest on exchanges had increased to 80.7 million.

This could be a sign that profit-taking may soon be rampant. Hence DOGE’s price could slightly retrace if the act comes to fruition.