Elon Musk’s lawyer to lead $200M Dogecoin treasury firm – Details

Key Takeaways

Dogecoin gained institutional traction as Elon Musk’s lawyer, Alex Spiro, is expected to chair a $200 million treasury company. Futures data showed bullish positioning, yet on-chain demand weakened.

Despite the crypto market posting record-breaking gains in recent months, established memecoins, such as Dogecoin [DOGE] have lagged behind.

These struggles stemmed mainly from DOGE’s lack of institutional backing. Now, tides appeared to shift as institutional investors prepared for DOGE accumulation.

Elon Musk’s lawyer to chair Dogecoin treasury company

In a significant development for Dogecoin, major investors are set to enter the public market with the support of Elon Musk’s lawyer, Alex Spiro. 

According to a report by Fortune, investors have received pitches for a Dogecoin treasury company that will invest in DOGE.

The company plans to raise at least $200 million to buy and hold Dogecoin as a reserve asset, potentially benefiting from future price performance.

The House of Doge has signed off on the initiative, as well.

Importantly, Alex Spiro is expected to serve as chairman of the treasury company, according to a pitch reviewed by investors and multiple sources. It remains unclear whether Elon Musk will be directly involved, and the plan has not been finalized.

Even so, Spiro’s expected role indicated a significant connection.

Dogecoin Futures hold strong

Interestingly, as speculation over the Dogecoin treasury company spread, demand for Futures positions skyrocketed in tandem.

According to Coinalyze, DOGE’s Long/Short Ratio spiked to 4.15, at press time, with longs accounting for 80.58% of total Futures positions.

Source: Coinalyze

Typically, when longs dominate, it implies most participants were bullish. A positive Funding Rate further validated this sentiment.

Thus, traders were actively betting on higher prices.

Spot demand fails to reawaken

Surprisingly, despite the latest reports, Dogecoin failed to attract buyers, and on-chain demand has remained extremely low.

According to Coinalyze, DOGE recorded a negative Buy-Sell Delta for seven consecutive days. Over the past day, the memecoin saw $1.1 billion in Sell Volume compared to $1 billion in Buy Volume.

Source: Coinalyze

As a result, the memecoin recorded a -142 million Buy-Sell Delta, a clear sign of aggressive selling.

Equally, the memecoin’s Price DAA Divergence has remained negative over the last week, signaling reduced demand and usage.

Source: Santiment

Did the news impact DOGE?

DOGE continued to trade within a thin margin.

At press time, DOGE traded at $0.217, up 1.37% in 24 hours. Before these slight gains, it had been on a downtrend, sliding 9% on the weekly chart.

Source: TradingView

TradingView data showed strong downward momentum, with Stochastic RSI at 31.34 after a bearish crossover. At the same time, DOGE traded below its Parabolic SAR, further confirming the downtrend.

If sentiment lifts, DOGE could test resistance near $0.24. However, if sellers and weak demand persist, the token will likely remain range-bound with $0.20 as key support.