Key Insights:
- Find out how the Elon Musk versus OpenAI legal battle could influence Dogecoin price action.
- DOGE price wedge pattern signals potential breakout despite recent short-term sell pressure.
- Larger order books reveal rising demand for DOGE among whales.
Will Dogecoin price react following the recent outcome in the legal battle between Elon Musk and OpenAI? DOGE price has been in a downward trend over the last 3 days, but the case may set the pace for interesting price action.
At first glance, the Elon Musk versus OpenAI lawsuit may not have a direct influence on Dogecoin price action. However, the Tesla founder has historically influenced the meme coin’s performance on numerous occasions.
The meme coin tends to react positively or negatively to Elon Musk-related matters, ever since he declared himself the Doge father. As such, similar expectations may be expected, especially in the high-profile legal battle between Musk and OpenAI.
Recent updates revealed that U.S. District Judge Yvonne Gonzalez Rogers has dismissed OpenAI’s petition to dismiss the case. The AI giant claimed that Musk’s claims were outlandish and that they had a strong defense.
The Judge’s decision effectively gave Elon Musk an advantage, and it means the trial. As a result, some members of the Dogecoin community anticipated a rally courtesy of this outcome.
Dogecoin Price Could Be on the Verge of a Breakout
DOGE price was trading around $0.13 at the time of observation, after retreating by almost 10% from its weekly high. This meant that the Elon Musk versus OpenAI situation did not have an impact on the meme coin’s demand.
However, Dogecoin price may still be headed for a bullish pattern, judging by its chart pattern. The meme coin has been trading in a wedge pattern and is currently within the pattern’s narrow zone.
Moreover, DOGE was already discounted by over 54% from its September 2025 high and about 82% from its highest price point last year. This discounted price may boost its attractiveness.
The DOGE price RSI has been pushing higher since the start of January 2026. This suggests that the bulls have been building up momentum, and could be a sign of rising accumulation. This also warrants an assessment of the prevailing demand levels.
Are Dogecoin Whales Accumulating at Recent Lows?
Whale activity was mixed between buying and selling over the last 2 days. Whales contributed over $6 million in net inflows on Binance. OKX spot recorded net outflows of just over $4 million.
Derivatives market data revealed that whales on both OKX and Binance made bullish bets. OKX had over $21 million in net longs, and Binance perps had over $18 million in net longs. This suggests that whales may be leaning toward the bulls.
Although the large order book data suggested whales had a slight bullish bias, the overall spot flows have maintained a negative streak since 5 January.
Spot flows may also explain why Dogecoin failed to rally, even as Elon Musk got the upper hand in his legal battle with OpenAI. The meme coin recorded over $40 million worth of spot outflows in the last 24 hours.
In summary, DOGE price may be headed for further downside if sell pressure prevails. That’s because it still has room for retesting the lower range of its wedge pattern before the eventual breakout. However, Dogecoin price could be on track to break out of the pattern by the end of January.
Source: https://www.thecoinrepublic.com/2026/01/17/dogecoin-price-slips-as-elon-musk-vs-openai-legal-battle-heads-to-trial/
