- Elon Musk’s court victory leaves Dogecoin’s market response in a state of uncertainty.
- Dogecoin’s price remains stagnant despite increased active addresses post-Musk lawsuit.
- Bearish sentiment prevails in the Dogecoin market, but sentiment shift remains possible.
Tesla CEO Elon Musk has recently secured a legal victory, as a U.S. District Judge in Manhattan dismissed a federal lawsuit accusing him and Tesla, Inc. of defrauding investors through the promotion and trading of Dogecoin. This ruling, which marks an important milestone for Musk, leaves the cryptocurrency community speculating about the potential impact on Dogecoin’s price.
Lawsuit Dismissal Sparks Market Uncertainty
The lawsuit, which had drawn considerable attention, accused Musk and Tesla of manipulating Dogecoin’s price for personal gain. Investors claimed that the Tesla CEO and his company engaged in insider trading, using publicity stunts—such as social media posts and television appearances—to inflate Dogecoin’s price by over 36,000%.
Elon Musk’s X Removes Crypto Emojis, Puzzling Community During Bitcoin 2024Following this alleged manipulation, the lawsuit argued that Musk profited by selling the cryptocurrency at its peak, causing the market to crash afterward. Despite the high-profile nature of the case, the court’s decision to dismiss the lawsuit leaves Dogecoin’s market response uncertain.
Price Movement Reflects Mixed Sentiment
In the wake of the court ruling, Dogecoin’s price movement has been notably subdued. The crypto saw a decline in the last 24 hours, which further contributed to investor uncertainty.
On-chain metrics provide a deeper insight into this situation, revealing mixed sentiments among traders. Notably, the number of active Dogecoin addresses reached a two-week high, indicating a growing interest in the meme coin. However, this increase in user activity has not translated into significant price movement, as Dogecoin’s price has remained largely stagnant over the past three days.
Bearish Market Indicators
Further analysis of Dogecoin’s market dynamics shows a predominantly bearish sentiment. The 30-day Coinglass Liquidation Heat Map indicates a higher number of Shorts compared to Longs, suggesting that the market is leaning towards a bearish outlook for Dogecoin.
However, the gap between the total amount of Shorts and Longs is narrowing rapidly, signaling a potential shift in market sentiment. Despite the current bearish trend, the situation remains fluid, and a change to a more bullish stance could emerge at any moment.
At the time of reporting, Dogecoin was trading at $0.102, with a 24-hour trading volume of $505,569,395, reflecting a 1.26% increase over the past 24 hours and a -4.34% decline over the past week. The cryptocurrency market remains in a state of indecision, with traders closely monitoring the evolving dynamics.
