Whale transactions in Dogecoin amid Musk controversies
Since Elon Musk took over Twitter, the Dogecoin community had hoped for greater attention. This same acquisition was crucial to the meme's surge in the days after Musk's purchase of the social media site.
The jubilation, however, was short-lived, as DOGE fell 8% in the last seven days. Furthermore, as of November 19th, CoinMarketCap reported that the coin was trading at R1.45.
Despite the downturn, Dogecoin's whales have continued to transact on the chain. At the time of writing, Dogecoin Whale Alert reported significant transactions totaling R60 million between November 18 and November 19. Surprisingly, the majority of these transactions came from the coin's top twenty wallets.
DOGE and Musk's bond
Furthermore, DOGE's inability to regain the Twitter purchase-week levels could be linked to Mr. Musk's recent action. The "Dogecoin promoter" had recently been embroiled in public altercations with staff. Likewise, he reinstated controversial people on social media network. In turn, given the negativity surrounding him, DOGE's current performance may not be surprising.
DOGE appeared to be stuck in a tussle for a bullish or bearish trend following the bond between both parties. This position was indicated by the Directional Movement Index (DMI). According to the DMI, the buying power (green) has retained a slight advantage over the bearish direction possibility (red).
The Average Directional Index (ADX), at 24.76, indicated that bullish strength required more effort to neutralize the possibility of DOGE opting for a bearish state. Furthermore, the Moving Average Convergence Divergence (MACD) seems to have secured the bearish outlook. DOGE sellers (orange) controlled the coin momentum when examining the MACD. While buyers (blue) were not far away, the position showed bearish momentum. As a result, it was almost clear that Dogecoin's attempt to revert to an upswing in the short term would fail.
On-chain visuals
DOGE's investors felt the impact of the price fall based on its thirty-day Market Value to Realized Value (MVRV) ratio. According to Santiment, the MVRV ratio was -12.74% as of November 19.
While this indicated a recovery from its position on November 9, it did not appear to be sufficient to help recoup profits made around October 30. As a result, the MVRV ratio indicated that DOGE investors had suffered losses.
At the same time, making big profits for individuals who have recently acquired the altcoin may be difficult.
