Dogecoin shows resilience despite DogeFather Elon Musk's legal troubles

• Dogecoin steadies despite news of Elon Musk facing a SEC investigation.
• The SEC warns of potential court action if Musk fails to comply with the subpoena.
• Dogecoin's on-chain signals indicate a bearish sentiment even if it has the Twitter spotlight.

Dogecoin (DOGE) price seems unaffected by the news that its advocate, Elon Musk – often referred as the "DogeFather" – is in legal trouble with the United States Securities & Exchange Commission (SEC). On Thursday, the agency filed a subpoena against Musk to comply with its investigation of alleged federal securities law violations. 

DogeFather Elon Musk faces SEC 

The SEC is investigating whether Elon Musk violated the federal securities law when he bought Twitter in 2022. On Thursday, the watchdog sought Musk's testimony by filing a subpoena after the billionaire failed to appear during the probe. 

The SEC noted in the order that the agency may file a subpoena enforcement action in federal district court if Musk fails to comply. The agency said Musk failed to testify in September after receiving a subpoena in May.

The agency underlined that the Tesla chief raised objections only two days before the scheduled hearing. The SEC staff’s application seeks a court order for Musk’s compliance with the subpoena.

Dogecoin price remains unchanged

Dogecoin has remained steady despite the news. At the time of writing, DOGE price is at $0.06, with minor gains over the last 24 hours.  Its performance in the last week has remained muted as well.  As one of his main advocates, developments surrounding Elon Musk tend to have an effect on DOGE price.  

Meanwhile, on-chain signals are appearing mostly bearish, according to IntoTheBlock research.  The momentum indicator for large transactions suggests a bearish sentiment at 1.97%. This means that transactions bigger than $100,000 are falling. 

Meanwhile, IntotheBlock’s “In/Out of the Money Around Price” (IOMAP) model shows that 41% of Dogecoin holders are currently in a profitable position, and2% are breaking even. The model, which identifies investors’ average purchase price of a crypto asset versus its current price, leaves a majority of 57% of holders at a loss at the current price levels. 

DOGE’s on-chain indicators

Dogecoin reasons for resilience may lay on the token’s close relationship with X, previously Twitter, since Musk bought it.  Twitter has kept the memecoin in the spotlight. 

Recently, American hedge fund manager Bill Ackman told The Wall Street Journal that he is interested in collaborating with Musk's Twitter, which has now rebranded as X. In August, Musk called X a doge-friendly place.
 

With a circulating supply of 140 billion DOGE, Dogecoin's market cap is over $8.6 billion, according to CoinGecko figures. 

While Dogecoin may experience news-based short-term price fluctuations, investors should keep in mind that on-chain metrics indicate bearish sentiments, signaling a potential downtrend.