• Dogecoin (DOGE) surged after Elon Musk changed his Twitter logo to DOGE, but Santiment analysts see signs of a top forming.
• According to Santiment, there are several signs of a top forming as major players began taking profits, including active addresses and circulation, trading volume and transaction volume, and whale transactions ($100k+).
• The analysis noted that the whale accumulation indicates that some individuals close to Musk knew about the planned DOGE pump before it occurred.
Dogecoin (DOGE) Price Surge
Dogecoin (DOGE) experienced a massive surge in price after Tesla CEO Elon Musk changed his Twitter logo to a Dogecoin logo. This move generated polarizing opinions on Crypto Twitter with some speculating that it was a marketing strategy aimed at getting laughs, attention or money. Regardless of Musk’s intentions, Dogecoin’s price went up by more than a third in a short period of time decoupling from the rest of the cryptocurrency market.
Analysis by Santiment
Analytics platform Santiment conducted an analysis which revealed that there were several signs of a top forming as major players began taking profits. Three metrics: active addresses and circulation; trading volume and transaction volume; and whale transactions ($100k+) all spiked together during Dogecoin’s surge indicating that a local top was forming. Additionally, the 30-day MVRV which measures average trading returns is sitting at +11%, indicating there may still be some cushion for prices to rise further.
Whale Accumulation Before Pump
The analysis also noted that the whale accumulation indicates that some individuals close to Musk knew about the planned DOGE pump before it occurred. When the price spike happened, whales dumped indicating they were taking profits from the pump.
Current Price & Potential Upside
At the time this article was written, Dogecoin was worth $0.08 and has increased by 0.6%. Despite recent correction, Santiment predicts more growth potential for Dogecoin due its current MVRV value not being too high yet at +11%.
Conclusion
Dogecoin experienced an impressive surge after Elon Musk changed his Twitter logo to DOGE which caused polarizing opinions on Crypto Twitter. However according to analytics platform Santiment’s analysis there are still plenty of upside potentials left due to its current MVRV value not being too high yet plus accumulated whales prior to price spike suggests insider knowledge about planned pump from those close to Musk himself