Here’s how Dogecoin reacted to Elon Musk’s declaration to drop the Twitter mantle
- DOGE maintained its social dominance amid the announcement.
- Traders decided to open long positions.
The Dogecoin [DOGE] community may have to start adjusting to Elon Musk’s decision to step down as Twitter’s CEO. DOGE has been a beneficiary of Musk’s tweets, which have often caused significant price movements in the digital asset.
Is your portfolio green? Check the Dogecoin Profit Calculator
Beyond the price action, the meme has also enjoyed several stints of Musk’s attempt to integrate a Dogecoin payment structure.
In fact, the controversial figure tweeted about the possibility of a meme-admirer replacement like himself at Twitter’s helm of affairs.
It’s time to step back
The social media platform owner pointed out in a tweet on 11 May that his replacement will take over in six weeks. And the only hint he gave was that his successor would be a female.
Excited to announce that I’ve hired a new CEO for X/Twitter. She will be starting in ~6 weeks!
My role will transition to being exec chair & CTO, overseeing product, software & sysops.
— Elon Musk (@elonmusk) May 11, 2023
As expected, the meme community questioned Musk if his purported plans for Dogecoin would be affected. But he hasn’t responded as of press time.
Yet, in the aftermath of the announcement, active addresses surged. As of this writing, the 24-hour active addresses rose to 121,000.
In crypto, an address is proclaimed active when it takes part in a successful transaction. Therefore, the hike indicated how there has been an increased number of DOGE users within the period.
However, the impact on social dominance has been casual. At press time, the metric balanced at 4.68%.
This rate explains the fraction DOGE has taken with respect to discussions on social platforms. But what cue did traders take from the development?
According to Coinglass, the futures open interest increased substantially across most exchanges. Open interest is a measure of the liquidity flow into the derivatives market.
Typically, higher open interest signals increased demand for potential profits from an asset’s price action. And that was the situation with DOGE, indicating that money flowed into the contracts connected to the meme.
Meanwhile, information from the crypto derivatives portal showed that the DOGE long/short ratio was 1.01. The indicator serves as a measure of investors’ expectations.
How much are 1,10,100 DOGEs worth today?
When the ratio decreases, it means that more short positions are open. But when it rises, it indicates how long positions outpaced shorts. Therefore, the condition at press time suggests that most traders looked forward to a positive reaction from DOGE.
Additionally, Elon Musk has not named his successor as of this writing. However, the Financial Times reported that there was speculation that Linda Yaccarino was the anointed one.