Dogecoin hype spikes after Musk’s ‘it’s time’ – But do on-chain data agree?

Key Takeaways

Is Dogecoin reacting to Elon Musk’s latest post?

Not really. Social buzz spiked, but price and on-chain activity stayed quiet.

What’s the current state of DOGE’s traders?

Open interest has dropped to $690 million, so traders are losing confidence.

Elon Musk is at it again.

The tech leader’s latest post on X has once again put Dogecoin [DOGE] in the spotlight. The memecoin saw a brief surge in social chatter following his comment.

But so far, the market response has been far less enthusiastic.

Musk’s post reignites DOGE buzz

Elon Musk’s brief “It’s time” post on X quickly caught the Dogecoin community’s attention.

Source: X

The update came as a reply to a fan account referencing Musk’s 2021 promise to send a literal Dogecoin to the moon; a statement that once fueled massive rallies and brought DOGE into mainstream conversation.

This time, however, the reaction has been more restrained, with traders watching to see whether Musk’s latest comment will translate into real momentum.

All talk, no walk

Between Musk’s post and press time, social metrics have spiked considerably.

Source: Santiment

DOGE’s Social Volume and Social Dominance jumped to multi-day highs, signaling renewed attention. However, Santiment data also showed that the on-chain picture hasn’t caught up.

Source: Santiment

Daily Active Addresses hovered near 37.7K, Transaction Volume fell to $125 million, and Whale Transactions (> $1 million) dropped to just five at press time.

While optimism is in the air, the actual numbers are staying relatively quiet.

Bulls on the sidelines

Source: CoinGlass

Open Interest has steadily declined to around $690 million, so trader participation is waning. Meanwhile, the Funding Rates remained slightly positive at 0.16%, so long positions still outweighed shorts. However, this was without strong confidence.

On the price chart, DOGE traded near $0.16 at press time, struggling to find a footing after a steep drop. The RSI was around 30, indicating oversold conditions, while volume remained muted.

Source: TradingView

It seems traders have learned not to chase Musk’s hype… even when it’s about a coin built on it. How Dogecoin responds this time is still anyone’s guess.