In an unexpected turn of events, Elon Musk deleted the Twitter dog emblem that has become synonymous with Dogecoin [DOGE]. While all good things must end, the impact on DOGE’s value has been apparent, prompting alarm among investors and fans alike.
Twitter users awakened a few days ago to find Elon Musk had pulled another of his trademark shocks by altering the bluebird insignia to that of a dog. The Dogecoin and related coin communities perceived this as an endorsement, sending values skyrocketing.
The debut of the Dogecoin logo on Twitter was as unexpected as its disappearance, and user response was equally rapid. While everything appeared to be returning to normal, there was one significant exception: the price of Dogecoin needed to follow suit.
The value of DOGE skyrocketed on April 3rd, coinciding with the logo update. However, the following days saw a shift in market dynamics, with sell pressure becoming more prominent, and the value began to fall. As of this writing, the price range tool shows a 23% decrease in value. The cryptocurrency was trading at roughly $0.8 at press time, representing a more than 3% loss.
The Relative Strength Index (RSI) line confirmed the abrupt decline, indicating a fast reversal of the positive trend. As of this writing, the RSI line was on the verge of crossing the neutral line and may fall much farther if the price continues to plummet. While the long and short Moving Averages have been giving support, it is unclear how long this will last.
Dogecoin’s 30-day Market Value to Realized Value ratio (MVRV) was 2.48% on April 6, showing a solid value. However, the circumstance changed after three days, with the MVRV plunging dramatically below zero to roughly -0.77%.
In addition to price and MVRV, the volume measure saw a significant reversal. Previously, the volume peaked at roughly 170,000, but it has since plummeted to around 130,000. The reduction signaled that purchasing pressure had diminished and sellers had taken control, resulting in a decline in Dogecoin demand.
In another recent development, a group of Dogecoin investors sued Elon Musk, saying that he pushed DOGE as a Ponzi scheme. In contrast, Elon has maintained his innocence.