• DOGE maintained its social dominance with the announcement.

  • The trader decides to open a long position.

The Dogecoin [DOGE] community may have to start adjusting to Elon Musk’s decision to step down as CEO of Twitter. DOGE has been the beneficiary of Musk’s tweets, which often cause large price swings in the digital asset.

In addition to price action, memes have also enjoyed Musk’s several attempts at integrating Dogecoin’s payment structure.

In fact, the controversial figure tweeted that it was possible that a meme admirer like him could take over at the helm of Twitter.

It's time to take a step back

The social media platform owner noted in a tweet on May 11 that his successor would take over within six weeks. The only hint he gave was that his successor would be a woman.

As expected, the meme community questioned whether Musk's stated plans for Dogecoin would be affected. But as of press time, he had not yet responded.

However, following the announcement, there was a surge in active addresses. As of this writing, 24-hour active addresses rose to 121,000.​

In cryptocurrencies, an address is declared active when it participates in a successful transaction. Therefore, the rate hike indicates an increase in the number of DOGE users during this period.

However, the effect on social dominance was incidental. At press time, the indicator was balanced at 4.68%.

This ratio explains what proportion of DOGE is discussed on the social platform. But what clues can traders take from this development?

Bullish sentiment prevails

According to Coinglass, futures open interest increased significantly on most exchanges. Open interest is a measure of liquidity flowing into derivatives markets.​

Typically, higher open interest indicates increased demand for potential profits from an asset's price action. This is the case with DOGE, which shows that funds flowed into meme-related contracts.

Meanwhile, information from the crypto derivatives portal shows that the DOGE long/short ratio is 1.01. This indicator measures investor expectations.​

When the ratio decreases, it means more short positions are open. But when it rises, it shows that long positions outnumber short positions. Therefore, the situation at press time suggests that most traders are expecting a positive reaction from DOGE.

Furthermore, at the time of writing, Elon Musk has yet to name a successor. However, the Financial Times reports that there is speculation that Linda Iaccarino is the anointed one.