Dogecoin Takes A Beating As Twitter-Elon Musk Rally Fizzles Out

Dogecoin DOGE/USD traded 9.6% lower at $0.14 over 24 hours leading up to early Wednesday morning. 

DOGE fell alongside other major coins as the global cryptocurrency market cap declined 4.4% to $1.8 trillion. 

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The DOGE Factors 

• Dogecoin was noted trending on both CoinMarketCap and CoinGecko price tracking websites at press time.
• DOGE was among the most mentioned coins on Twitter. It attracted 2,810 tweets at press time, according to Cointrendz data. The three most mentioned coins were XRP, Bitcoin, and Ethereum.
• The 24-hour trading volume for Dogecoin fell 41.7% to $3.73 billion at press time, according to CoinMarketCap.
• Data from Coinglass showed that $25.54 million worth of DOGE futures were liquidated in the preceding 24 hours as the meme cryptocurrency declined at press time

Wall Street Risk Aversion 

Bitcoin traded lower on Tuesday as risk aversion returned to Wall Street, according to Edward Moya, a senior market analyst with OANDA. Other major cryptocurrencies were also seen trading lower, including DOGE. 

DOGE transactions Soar

The number of large transactions, worth more than $100,000, on the Dogecoin network, touched a fourth-month high at 2,400, according to the chartist Ali Martinez. 

“Such market behavior can act as a proxy for whales' activity, suggesting how they may be positioning for a big price move,” said Martinez.

DOGE Still Looks Awful — A Wrong Call?

Cryptocurrency trader Justin Bennett tweeted Tuesday that “Doge looks awful” was the wrong call in the short term.

The reply guys had a field day with it. Thank goodness for them. Otherwise, I might never know when I'm wrong,” said the analyst. “A lot of unnecessary drama for yet another bull trap.”

Twitter Scambots, Dogecoin And Elon Musk

Marcus Sotiriou, an analyst with the United Kingdom-based digital asset broker GlobalBlock, said — in a note seen by Benzinga — that it is unclear what Tesla Inc TSLA CEO Elon Musk will do differently to tackle scam bots on Twitter Inc’s TWTR platform. 

Doge On The Web

“Scam bots are clearly a key issue that is having a significant impact, so Musk will be under pressure to tackle this problem,” said Sotiriou.

On Dogecoin’s rise Sotiriou said, “Speculators have been buying Dogecoin due to Elon’s obsession with the cryptocurrency, and hence the potential for Dogecoin to be given more utility on one of the biggest social media networks once Elon has official control of the company.”

Dogecoin posted a tumbleweed meme and said “here are all the good reasons why [Dogecoin] is not part of the [Twitter] crypto tip jar feature. 

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