The price of Dogecoin rose unexpectedly quickly after Elon Musk’s tweet on January 25. Traders remained bullish despite potential near-term selling pressure.

On the morning of January 29, Dogecoin was trending on Twitter. There was even a spike in the social volume metric.

Now you may be wondering what exactly was the reason for that. Well, a recent tweet from Elon Musk has reportedly sparked interest in Dogecoin.

In the tweet, Musk said he would be interested in eating McDonald’s if Dogecoin was accepted as a valid form of payment by the American multinational fast food chain.

This tweet caused a stir on social media, with many speculating about the possible impact of the tweet on the price of the meme coin.

Interestingly, even the McDonald’s team participated about the activity, further fueling speculation.

The center of attention

As a result of this increased attention, social mentions and engagements for Dogecoin saw a categorical jump. According to data from LunarCrush, Doge’s social mentions have grown 4% over the past week, along with a corresponding increase in engagement.

Realistic or not, here is DOGE’s market cap in terms of BTC

As the value of Dogecoin rose, so did the MVRV ratio, indicating that many Dogecoin holders have the opportunity to sell their holdings for a profit.

In addition, the negative long/short difference suggested that these profitable addresses belonged to short-term holders. This increases the possibility that they will sell their DOGE property for financial gain. This may negatively affect DOGE in the future.

Source: Dogecoin

Traders love it

In addition, the number of long positions on Dogecoin continued to increase substantially. According to Coinglass data, the number of long positions held by top traders has increased from 71% to 77% over the past month.

This implied that most traders were extremely optimistic about DOGE’s future at the time of writing.

mint glass

Moreover, miners’ interest in Dogecoin also increased; by the way, consider the growing hashrate. Well, this increased hashrate could possibly lead to more stability as it is a known fact that more miners provide more computing power to secure the network.

Is your wallet green? Check out the DOGE Profit Calculator

Source: Messari

However, given that DOGE is a meme coin, the future of this cryptocurrency remains uncertain. As with any memecoin, the value of Dogecoin is highly volatile and can fluctuate significantly in a short period of time.

At the time of writing, the price of DOGE was $0.08863 after falling 2.00% in the past 24 hours, according to CoinMarketCap.

Therefore, doubling DOGE in the short term may not be a good idea for traders who avoid risk.

This post Dogecoin long bets up 6% – Musk’s ‘McDoge’ stance responsible?

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