The small dispute between Donald Trump and Elon Musk seems to be finally over. The Tesla CEO's apologies could lead to a significant rebound in the price of Dogecoin in the coming days.
The rebound of Dogecoin following Musk's apologies to Trump
Although Dogecoin (DOGE) rebounded by 2.97% following Elon Musk's apologies to Donald Trump, retail investors remain cautious. Trading volume increased by 37.73% and open interest by 10.84%. However, the engagement of 'ants' in the spot market has remained low, hindering a more sustained progression.
Unlike usual practices, no buying frenzy from retail investors has been observed despite the attention generated by Musk's apologies. Although the news made a splash, the lack of demand from 'ants' has limited the rise of DOGE. Without this enthusiasm from small investors, the key resistance may not be reached.
Although the momentum of DOGE is supported by interest in derivatives and the buzz around Musk's actions, the absence of participation from retail investors, the usual drivers of previous rallies, could hinder future progress. Without their full involvement, the rally risks losing its strength. It may also struggle to maintain its long-term gains.
Progress of DOGE without the euphoria of retail investors?
Unlike previous occasions when news related to Elon Musk triggered rallies driven by retail investors, this time no wave of frenzied buying has been observed. The lack of enthusiasm from 'ants' has limited the price progression of DOGE despite the attention generated.
The current momentum of DOGE is supported by trader interest in derivatives and the buzz around Musk's political actions. However, without the full participation of retail investors, the usual drivers of previous explosive DOGE rallies, the potential for sustainable growth remains uncertain. Price progression could face obstacles without massive support from the 'crowd'.
With the long/short ratio clearly favoring long positions on Binance, traders need to remain vigilant. If the price faces rejection at the resistance level, overly confident long positions could trigger a quick correction. Close monitoring of market sentiment will be essential to avoid getting caught in a potential trend reversal.
