The price of Dogecoin has climbed by 1% over the past 24 hours, and at $0.085864 right now, it has increased by 43% over the last month. The meme token owes its recent success to Elon Musk's $44 billion acquisition of Twitter, but it's now doubtful that DOGE can maintain its previous momentum given that the social media company is currently in disarray as a result of its owner giving employees an ultimatum regarding its new work culture.
The coin still has a long way to go before it reaches its previous record because it is currently 88% below its all-time high, which was $0.731578 (reached in May 2021).
The indicators for DOGE paint a contrasting picture; its relative strength index (purple) is up from 40 and indicates a potential rebound. In contrast, a potential downswing is indicated by the 30-day moving average's (red) potential peak in its ascension above the 200-day average's (blue).
The fundamentals of dogecoin, which have recently been closely associated with Twitter and Elon Musk's ownership of it, don't help clarify this murky picture. That's because rumors of widespread worker resignations have hounded Musk's version of Twitter, 2.0, during the previous few days.
These resignations followed Musk's ultimatum, in which he requested that staff members commit to a new, more intense workplace culture. The CEO of Tesla and SpaceX creator Elon Musk's concept for the social network appears to be unpopular with many staff, as many are now departing the company.
In fact, according to some estimates, 75% of the remaining 3,700 Twitter employees have now formally quit (Musk had previously fired off 50% of the social network's workforce upon taking over the company). Even worse, the business has declared that its San Francisco office would be closed until Monday.
Now that there are fewer personnel available to fix problems, many anticipate a cascade of technical challenges for Twitter. The recent rising hashtags #RIPTwitter and #TwitterDown highlight the current state of affairs.
Insofar as its recent gains were based on the assumption that Elon Musk would implement Twitter payments and/or tipping in the alternative coin, this has an impact on dogecoin. Now, it appears that the execution of such ideas is a long way off because Musk is preoccupied with persuading engineers to stay with the company.
Therefore, as Musk's ownership of Twitter becomes more and more problematic, the gains DOGE made in late October may be lost in the upcoming weeks. He could, of course, change things around and eventually provide some sort of interface with Dogecoin, but for the time being, that prospect is fading quickly.
In reality, earlier reports claimed that Musk had already abandoned plans to integrate cryptocurrencies, encouraging workers to place the launch of the new subscription system above all else. Therefore, it can take some time until Musk gives DOGE another external boost.
However, it must be acknowledged that DOGE's fundamentals are really poor for such a significant (in terms of market size) cryptocurrency. For instance, it comes in at 108th place when looking at GitHub commits over the last 12 months, trailing Ocean Protocol.
This emphasizes the relative lack of development the Dogecoin protocol saw in 2022 (and before), suggesting that its recent gains are mostly based on excitement rather than on some fundamental basis to believe that it will outperform other cryptocurrencies for adoption. It also doesn't have many collaborations or adoption stories to brag about, with the occasional merchant report this year is omitting to add that their acceptance was part of a trend that included a number of other cryptocurrencies.
In other words, aside from its connection to Elon Musk, DOGE isn't particularly strong. Such an association might end up doing more harm than good, especially given the possibility of Elon Musk's name turning toxic in the wake of his alleged failure to properly execute the takeover of Twitter.
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