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Here’s how Dogecoin reacted to Elon Musk’s declaration to drop the Twitter mantle

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As the billionaire prepares to operate behind the scenes, will the Dogecoin clan be satisfied with the new face of Twitter?

Here’s how Dogecoin reacted to Elon Musk’s declaration to drop the Twitter mantle

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  • 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.

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.

Dogecoin active addresses and social dominance

Source: Santiment

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?

Bullishness prevails 

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.

Dogecoin futures open interest

Source: Coinglass

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.

Dogecoin long/short ratio

Source: Coinglass

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.


Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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