Key highlights:
- Elon Musk made a subtle reference to Dogecoin in a social media post about his fictional “Department of Government Efficiency” (DOGE).
- Dogecoin price rose by about 4% following Musk’s post.
- The cryptocurrency is showing bullish momentum, up 6.76% since the start of the week.
- Analysts have identified a potential bullish “falling wedge” pattern on the DOGE price chart.
- If the pattern continues, Dogecoin could potentially reach $0.15, a 50% increase from current levels.
Dogecoin, a cryptocurrency inspired by a popular meme, has seen its price soar after tech billionaire Elon Musk made a subtle reference to it on his social media platform X (formerly Twitter).
On Thursday, Musk mentioned a hypothetical “government efficiency department,” conveniently abbreviated to “DOGE,” the ticker symbol for Dogecoin.
department
of
government
efficiency— Elon Musk (@elonmusk) September 12, 2024
His posts have had an impact on the price of Dogecoin before, and this one seems to be no different. Following his comments, Dogecoin’s value rose by about 4% last week, reaching around $0.101.
The price action comes amidst broader market uncertainty, with Dogecoin’s daily trading volume actually down 10% to $508 million, according to CoinGecko data. Despite this, the cryptocurrency has shown resilience, rising more than 2% over the past 24 hours.
Analysts have pointed out that a potential bullish pattern is forming on the Dogecoin price chart. A “falling wedge” pattern has been identified, and if it fully unfolds, the price of Dogecoin could rise to $0.15. That would be a 50% increase from current levels.
However, it is 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 been under long-term downward pressure, falling about 4% in the past month.
The recent price action is consistent 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 recent comments about Dogecoin were part of a larger post in response to former President Donald Trump suggesting Musk lead a government efficiency commission. Musk once again showed his continued support for the cryptocurrency by including “DOGE” in his response.
The incident also drew reactions from other figures in the cryptocurrency space, with prominent Bitcoin advocate Michael Saylor responding with his own acronym, “Bitcoin, Boring, Complicated” (BTC), highlighting the ongoing rivalry and banter between various cryptocurrency supporters.
