- DOGE maintained its social dominance amid the announcement.
- Traders decided to open long positions.
The Dogecoin [DOGE] The community may have to adjust to Elon Musk’s decision to step down as CEO of Twitter. DOGE has taken advantage of Musk’s tweets, which have been frequent causes significant price movements in the digital asset.
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In addition to the price action, the meme has also enjoyed several attempts by Musk to integrate a Dogecoin payment structure.
In fact, the controversial figure tweeted about the possibility of one meme admirer replacement like himself at the helm of Twitter’s affairs.
It’s time to take a step back
The owner of the social media platform pointed out in a tweet on May 11 that his replacement will take over in six weeks. And the only hint he gave was that his successor would be a woman.
Happy to announce that I hired a new CEO for X/Twitter. She will start in ~6 weeks!
My role will transition to exec chair & CTO, overseeing products, software and sysops.
— Elon Musk (@elonmusk) May 11, 2023
As expected, the meme community asked Musk if his alleged plans for Dogecoin would be affected. But he has not yet commented as of this writing.
But in the wake of the announcement, active addresses increased. At the time of writing, the 24-hour active addresses have risen to 121,000.
In crypto, an address is declared active when it participates in a successful transaction. Therefore, the walk indicated how one has been increased number of DOGE users within the period.
Source: Sentiment
However, the impact on social dominance has been casual. At the time of writing, the statistic was balanced at 4.68%.
This percentage explains the fraction that DOGE has taken with regard to discussions on social platforms. But what signal have traders taken from the development?
Bullishness dominates
According to Coinglass, the futures open interest increased significantly on most exchanges. Open interest is a measure of the liquidity flow to the derivatives market.
Typically, higher open interest signals indicate greater demand for potential gains from an asset’s price action. And that was the situation with DOGE, indicating that money was flowing into the contracts associated with the meme.
Source: Coinglass
Meanwhile, information from the crypto derivatives portal revealed that the DOGE long/short ratio became 1.01. The indicator serves as a benchmark for investor expectations.
How many Worth 1,10,100 DOGEs today?
When the ratio drops, it means there are more short positions open. But when it rises, it shows how long positions outperformed shorts. Therefore, the situation at the time of going to press suggests that most traders were looking forward to a positive response from DOGE.
Source: Coinglass
Moreover, Elon Musk has not yet named a successor at the time of writing. But the Financial Times reported that there was speculation that Linda Yaccarino was the anointed one.