- The dog-themed token has reversed all the gains made during the Musk-induced rally.
- DOGE’s social media mentions have plummeted since the event.
The world’s largest memecoin Dogecoin [DOGE] fell sharply since the actions of its most influential backer, Elon Musk, pushed the price significantly higher a week ago.
Recall that the “original memecoin” rose more than 10% on January 21 when social platform X launched its official X Payments handle.
History has shown that Dogecoin consistently responds positively to payment-related developments at all companies owned by Elon Musk.
However, just like history, DOGE returned when the hype cooled down. The dog-themed token has since fallen 11%, effectively erasing any gains made during the Musk-induced rally.
Source: CoinMarketCap
DOGE’s roller coaster ride
As expected, whale investors, who showed huge interest in DOGE on the day of the Musk-induced rally, ultimately abandoned it.
According to AMBCrypto’s analysis of Santiment data, large transactions worth more than 100,000 have fallen 60% since January 21. The trajectory was almost synchronous with the price movement of DOGE.
Source: Santiment
Additionally, DOGE mentions on popular crypto-focused social media channels have fallen sharply since the double-digit rally.
Weighted sentiment also fell into negative territory, indicating that investor confidence has declined.
Source: Santiment
Too dependent on Elon Musk?
These statistics repeated what has been the story for DOGE for much of its recent history.
Social media posts and payment-related news linked to Elon Musk would get the community excited, but ultimately nothing major would come of it for the memecoin.
This over-reliance on the tech czar has not only limited DOGE’s potential but also made it a highly volatile asset. Other memecoins such as Shiba Inu, on the other hand [SHIB] and Floki [FLOKI] have diversified into real-world use cases.
A look inside the DOGE futures market
Meanwhile, the tenth largest cryptocurrency by market capitalization witnessed better demand in the derivatives market compared to earlier this month.
Realistic or not, here is DOGE’s market cap in BTC terms
According to AMBCrypto’s analysis of Coinglass data, the Open Interest (OI) in DOGE futures stood at $361.9 million at the time of writing. During the period between January 4 and January 20, it failed to cross the $350 million mark.
Source: Coinglass
Additionally, the number of shorts taken for DOGE outpaced longs for much of last week, the Longs/Shorts Ratio chart showed.
Source: Coinglass