Key Insights
- •Analysis of how the Elon Musk versus OpenAI legal battle could influence Dogecoin price action.
- •Identification of a potential breakout signal in DOGE price's wedge pattern, despite recent short-term selling pressure.
- •Observation of increased demand for DOGE among whales, indicated by larger order books.
The recent outcome in the legal battle between Elon Musk and OpenAI raises questions about its potential impact on Dogecoin's price. While DOGE price has experienced a downward trend over the past three days, the unfolding legal case might set the stage for significant price movements.
Although the lawsuit between Elon Musk and OpenAI might not appear to have a direct correlation with Dogecoin's price, the Tesla founder has a history of influencing the meme coin's performance. Dogecoin has consistently reacted, both positively and negatively, to matters involving Elon Musk ever since he embraced the title of "Doge father." Consequently, similar reactions are anticipated, particularly given the high-profile nature of the legal dispute between Musk and OpenAI.
Recent reports indicate that U.S. District Judge Yvonne Gonzalez Rogers has dismissed OpenAI's attempt to have the case thrown out. The artificial intelligence company had argued that Musk's claims were unfounded and that they possessed a robust defense.
This judicial decision effectively grants Elon Musk an advantage and signifies that the trial will proceed. As a result, some members of the Dogecoin community are anticipating a potential price rally stemming from this development.
Dogecoin Price Could Be on the Verge of a Breakout
At the time of observation, DOGE price was trading around $0.13, marking a retreat of nearly 10% from its weekly high. This indicates that the legal proceedings between Elon Musk and OpenAI have not yet stimulated increased demand for the meme coin.
Despite this short-term setback, Dogecoin's price chart pattern suggests it might still be poised for a bullish breakout. The meme coin has been trading within a wedge pattern and is currently situated in the pattern's narrowest zone.
Furthermore, DOGE is currently trading at a significant discount, over 54% below its September 2025 high and approximately 82% below its all-time peak from the previous year. This reduced price point could enhance its attractiveness to investors.
The Relative Strength Index (RSI) for DOGE price has shown an upward trend since the beginning of January 2026. This suggests a build-up of momentum among bulls and could signal increasing accumulation. This trend warrants a closer examination of current demand levels.
Are Dogecoin Whales Accumulating at Recent Lows?
Whale activity over the last two days has shown a mixed pattern of buying and selling. Net inflows of over $6 million were recorded on Binance from whale transactions, while OKX spot registered net outflows exceeding $4 million.
Data from the derivatives market indicates that whales on both OKX and Binance have been making bullish bets. OKX recorded net longs exceeding $21 million, and Binance perpetual futures showed net longs surpassing $18 million. This suggests a general inclination towards bullish sentiment among whales.
Despite the indications of a slight bullish bias from large order book data, overall spot flows have maintained a negative trend since January 5th.
The prevailing spot flows could explain why Dogecoin failed to rally, even as Elon Musk gained an advantage in his legal dispute with OpenAI. The meme coin experienced spot outflows totaling over $40 million in the past 24 hours.
In conclusion, DOGE price may face further downward pressure if selling pressure continues. The cryptocurrency still has room to retest the lower boundary of its wedge pattern before an eventual breakout. However, Dogecoin price could be on track to break out of this pattern by the end of January.