Dogecoin Price Could Explode 50% as Elon Musk Wins Lawsuit

Social Dominance Off the Charts, Dogecoin Price Next?

Additionally, Dogecoin active addresses hit a two-week high, indicating that more users are engaging with the meme coin, which is usually a positive sign of growing interest and usage. 

However, combined with the Dogecoin price, which has mostly stagnated over the last three days, this metric suggests the market is currently still in a state of indecision. Investors might be waiting for more significant news or developments before making substantial moves.

The DOGE price Daily Active Addresses (DAA) divergence was negative, dropping to a monthly low of -57.69%. It indicates that the price of a cryptocurrency is moving in the opposite direction of its daily active addresses.

There is also a discrepancy between the price of DAA, which is down, and the social dominance, which recently spiked. The high social dominance might be driven by speculative interest from the news of Elon Musk’s lawsuit dismissal. Investors and traders might be talking about the asset but not necessarily engaging with it through transactions.

DOGE Price Technical Analysis

The imbalance simply means the market is overall bearish on Dogecoin price, and the bears are anticipated to prevail in the end. However, the gap between the total amount of Shorts and Longs is small and rapidly closing, indicating that the sentiment could change to bullish at any time, sending the price to $0.13.

A deeper analysis of Coinglass data on open interest (OI) and price changes shows traders are closing their long positions, which is bearish because when they do, they tend to open short positions.