The meme status was among the driving facets behind Dogecoin’s success throughout 2021. However, the alternative token sees no hype a year down the line.
Nevertheless, the asset received support from Elon Musk. However, the recent move by the CEO might mean a dark cloud over Dogecoin’s performance.
New reports suggest Elon Musk has terminated the plan to buy the microblogging Twitter platform. How does that impact DOGE?
Well, Elon Musk has long supported the meme token. Speculation of DOGE being the official Twitter currency emerged as the Tesla CEO submitted the bid to buy Twitter.
However, Dogecoin’s future remains plagued by the uncertainty cloud now that Elon has terminated his Twitter buy plans.
DOGE prices didn’t react negatively during this publication after the announcement of Musk suspending the Twitter acquisition deal emerged.
Surprisingly, DOGE saw a brief upsurge within the previous 24 hours. While publishing this content, the meme coin changed hands near $0.069, surging 0.73% in the past 24 hours.
Dogecoin’s price actions presented a ranging performance during July’s first week, following an impressive increase since mid-July.
Its RSI (Relative Strength Index) has hovered around the 50-neutral as the MFI (Money Flow Index) recorded some outflows. That wasn’t surprising after the DOGE price slightly pushed towards the MFI’s distribution level beyond 80.
Behind the Scenes
Most traders remain wary about Dogecoin’s performance despite the brief uptick. Daily active addresses declined notably to 128,960 from 133,670 between July 8 and 9. Also, whale transactions witnessed fewer actions, slumping from 21 whales on July 7 to five whale transfers by July 8.
Dogecoin’s supply distribution shows different whale cohorts on a tug of war. For instance, addresses with 1 million to 10 million tokens have been selling their assets since June 26, whereas wallets with 10K to 1 million DOGE have accumulated during that timeframe.
Addresses with over ten million tokens presented the lowest activity over the past two weeks. Their balances saw a slight increase, and that’s crucial since it shows they haven’t been massively trimming their holdings.
That’s a lucrative signal for Dogecoin’s upswings and might explain the latest slight increase by the meme token.