Dogecoin quickly dived on Thursday after Twitter appeared to revert back to its normal blue bird logo, dumping a meme of a Shiba Inu dog that had graced the social network since Monday.
While the the price of the meme coin initially peaked on Monday following Musk's move, volumes have been in decline since Tuesday, according to Binance data via TradingView.
Analysts had been skeptical of the rally, noting the lack of depth in dogecoin markets (14% of volume is based on DOGE/USDT trading on Binance) and the short-lived nature of these rallies, which have been historically driven by Musk's "sporadic behavior."
"With a meme token like DOGE, the majority of its big moves come from narratives, and illiquidity acts as a leveraging force on the size of those moves," Conor Ryder, a research analyst at Kaiko, told The Block earlier in the week.
Musk hasn't yet tweeted about the switch back to blue bird logo.
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