Dogecoin Traders “Sell the News” Amid Tesla $1.2T AI Surge
Dogecoin remained flat below $0.15 on November 24 despite Elon Musk’s announcement of Tesla’s breakthrough in AI chip manufacturing. Tesla shares (TSLA) jumped 7.5%, pushing its market cap to $1.2 trillion, yet Dogecoin failed to mirror the rally. Data from Coinglass shows Dogecoin futures open interest fell 1.5% to $1.43 billion as traders closed about $20 million in positions, indicating a classic sell-the-news reaction. The long-short ratio dipped to 0.98, signaling fresh bearish bets on the memecoin. Technical indicators reinforce this negative outlook: Dogecoin trades below its 5-, 8- and 13-day simple moving averages, while the MACD remains in negative territory and the RSI sits at 41.22. Short-term support lies at $0.145, with a break risking a drop to $0.138. Bulls need a close above $0.154 and a reclaim of key moving averages to shift momentum. Overall, traders are taking a defensive stance, and Dogecoin faces further downside risk until a clear bullish catalyst emerges.
Bearish
Dogecoin’s muted response to Tesla’s AI announcement and the drop in futures open interest signal a clear bearish sentiment among traders. Historically, positive news from Elon Musk has fueled short-term spikes in DOGE, but the recent divergence suggests exhaustion of speculative momentum. The long-short ratio falling below 1.0 and roughly $20 million in futures liquidations reflect growing cautiousness, as market participants lock in gains rather than chase further upside. On-chain and technical indicators reinforce this outlook: Dogecoin remains under its short-term moving averages, the MACD is in a downward trend, and the RSI is below the neutral threshold. These factors point to continued selling pressure. In the short term, price risks testing support near $0.145 and potentially $0.138. Longer-term recovery depends on renewed bullish catalysts—such as additional network developments or high-profile endorsements—but absent these triggers, Dogecoin could consolidate or drift lower. Compared to past events where Musk’s tweets delivered immediate but fleeting rallies, this episode underscores a shift toward profit-taking and skepticism, suggesting a bearish bias until a sustainable catalyst emerges.