The price of Dogecoin (DOGE), the world's first-ever meme coin created as a joke, plummeted following Twitter's latest decision to restore the social media platform's iconic blue bird logo.

Tech billionaire Elon Musk, earlier this week, helped push Dogecoin to a new all-time high when his company, Twitter, inexplicably changed its logo to Shiba Inu, the Japanese dog, which is also DOGE's mascot. However, before the world's first-ever meme coin could see a new all-time high price, its value plummeted.

DOGE was trading up at 9.1 cents as of 4:45 p.m. ET on Thursday but saw a significant loss of 6.5% at 8.5 cents within half an hour after the social media platform decided to revert its original logo.

The meme coin, however, did not lose all of its gained value because of the sudden move by Twitter. DOGE saw a 30% gain and skyrocketed from 7.7 cents to 10.1 cents Monday and eventually surged to 10.2 cents Tuesday.

Interestingly, amid the DOGE price rally, on-chain data revealed this week that the second-largest Dogecoin whale dumped its meme coin holdings, raking them a substantial profit from the sale.

On-chain data shows that the second-largest Dogecoin whale dumped massive holdings amid the recent DOGE rally. Per the data, the big fish made a substantial profit. Based on the data provided by BitInfoCharts, the said whale, which held around 3.32 billion DOGE, in just a week, sold almost 31% of its holdings, or around 1.47 billion DOGE.

On-chain data provider Santiment also shared some interesting insights about the meme coin's price rally this week, revealing how Dogecoin whales close to Musk cashed out on the price pump.

"Most know by now that when Elon does something on Twitter, it's usually for the purpose of getting laughs, attention, or money. Perhaps in this case, all three were achieved," the on-chain data provider said.

The report underlined that major metrics such as active addresses and circulation, trading volume and transaction volume and whale transactions spiked at the same time, indicating that top players were dumping the asset and earning massive profits

"When these three metrics all spike together during a time when the asset is going on a decoupled surge independent from the rest of the markets, it's a pretty solid bet that a local top is nearly always forming here, and profit taking yourself is a wise decision," the report noted.

DOGE saw a 10.38% loss over the past 24 hours and was trading in the red zone at $0.08268 with a 24-hour volume of $1,433,735,156 as of 2:37 a.m. ET on Friday, according to the latest data from CoinMarketCap.

Illustration shows Elon Musk and representations of cryptocurrency Dogecoin
Reuters
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