On-chain data vendor Santiment has published an analytics insight regarding the recent surge of Dogecoin both in price and in social media discussions, making an attempt to figure out how long the effect of the DOGE change of the Twitter logo by Elon Musk would last.
There is one interesting thing the Santiment team noticed as Dogecoin became a major topic of discussion, related to Elon Musk.
As for the overall opinion regarding the aforementioned step of Elon Musk (Santiment shared a hope that DOGE became the Twitter logo only temporarily), the report says that Musk does nothing on Twitter unless he gets "laughs, attention, or money." In this particular case, "all three were achieved," the report states.
🐶 #Dogecoin has been the talk of the town since the (hopefully temporary) #Twitter logo change took the platform's community by storm. Looking past the memes & laughs, our latest insight explores on-chain metrics to see whether further pumps are coming. 👇https://t.co/rLJqaHn585 pic.twitter.com/KbCIGOuCHD— Santiment (@santimentfeed) April 5, 2023
DOGE price and social sentiment surge
After the logo of Twitter was changed from the well-known blue bird to DOGE, the price of the original meme token jumped roughly 33% and decoupled from the rest of the crypto market for a while. The market cap of DOGE also surged from $10.9 billion to $13.3 billion in less than 24 hours. Currently, it has declined and is holding at the $12,884,660,001 level.
The coin took eighth place on the CoinMarketCap scale and is currently trading at $0.09175 after correcting from the $0.1 peak reached, thanks to Elon Musk once again.
As reported by U.Today earlier, the level of DOGE mentions across various social media platforms spiked. Prominent crypto analyst Ali Martinez warned that, last year, the same thing happened twice, and after these massive surges of DOGE social sentiment, the price showed heavy corrections.
Whales close to Musk may have been aware of his plan
Santiment shared a chart showing a large number of top signals showing when "major players, who likely knew about the planned DOGE pump, were getting out of the asset or at least taking heavy profit," the report says. As Dogecoin skyrockets, decoupling from the rest of the crypto market, a local top was formed, so "profit taking is a wise decision," Santiment commented, and the aforementioned players did that immediately.
The report then continued that, as the DOGE price went up, small addresses (called "fish" by the analysts) started buying Dogecoin aggressively. This is also one of the indicators of a price top.
As for whales, they started a very mild accumulation. Santiment suggests that it is likely that these were people close to Musk and, of course, the Twitter boss himself too, who made huge profits on this surge. But the report highlights that this is "just speculation, of course, without knowing the identities of the owners of these addresses."
And finally, the whales (red line) seemed to have been showing sominterest in very mild accumulation leading up to Elon's DOGE logo replacement on Twitter. It was likely something was known by massive DOGE holders, eg. people close to him, and of course Elon himself.