Dogecoin (DOGE) Price: Gains Momentum Following Elon’s X Post, What Next?

TLDR:

• Elon Musk subtly referenced Dogecoin in a social media post about a fictional “Department Of Government Efficiency” (DOGE)
• Dogecoin price increased around 4% following Musk’s post
• The cryptocurrency is showing bullish momentum, up 6.76% since the beginning of the week
• Analysts identified a potential bullish “falling wedge” pattern on DOGE’s price chart
• If the pattern plays out, Dogecoin could potentially reach $0.15, a 50% increase from current levels

Dogecoin, the popular meme-inspired cryptocurrency, has seen a surge in price following a subtle reference by tech billionaire Elon Musk on his social media platform X (formerly Twitter).

On Thursday, Musk mentioned a fictional “Department Of Government Efficiency,” which conveniently abbreviates to “DOGE,” the ticker symbol for Dogecoin.

Department
Of
Government
Efficiency

— Elon Musk (@elonmusk) September 12, 2024

His posts have previously influenced Dogecoin’s price, and this instance appears to be no different. Following the mention, Dogecoin’s value increased by approximately 4% over the past week, reaching around $0.101.

The price movement comes amid broader market uncertainties, with Dogecoin’s daily trading volume actually decreasing by 10% to $508 million, according to data from CoinGecko. Despite this, the cryptocurrency has shown resilience, gaining over 2% in the last 24 hours.

Analysts have noted a potentially bullish pattern forming on Dogecoin’s price chart. A “falling wedge” pattern has been identified, which, if it plays out fully, could see Dogecoin’s price rise to $0.15. This would represent a significant 50% increase from its current levels.

However, it’s important to note that Dogecoin is still trading below its 200-day exponential moving average of $0.107, which could act as a short-term resistance level. The cryptocurrency has also faced downward pressure in longer timeframes, declining nearly 4% over the past month.

The recent price movement aligns with Dogecoin’s history of volatility, particularly in response to Musk’s social media activity. The billionaire’s influence on the cryptocurrency market has been a topic of discussion among investors and regulators alike.

Musk’s latest reference to Dogecoin was part of a larger post addressing former President Donald Trump’s proposal for Musk to lead a government efficiency commission. By  incorporating “DOGE” into his response, Musk once again demonstrated his ongoing support for the cryptocurrency.

This event also sparked reactions from other figures in the cryptocurrency space. Michael Saylor, a prominent Bitcoin advocate, responded with his own acronym “Banish, Tedious, Complexity” (BTC), highlighting the ongoing competition and banter between supporters of different cryptocurrencies.