Dogecoin (DOGE), the largest memecoin by market capitalization, recently received acknowledgment from Tesla’s CEO on X, sparking a frenzy among crypto investors and the DOGE community. Following the recent surge, some analysts believe that a major breakout for Dogecoin is imminent.
In a recent X post, Elon Musk responded to Donald Trump’s political proposition, which included the possibility of Musk taking on an advisory role or a cabinet position if Trump were to win the upcoming election. Trump called X’s owner a “brilliant guy” and expressed willingness to offer Musk a position, stating, “He’s a very smart guy. I certainly would, if he would do it, I certainly would.”
Elon Musk responded to this proposition on X, stating, “I’m willing to serve,” alongside an AI-generated image. This image depicted Musk standing at a podium labeled “Department Of Government Efficiency” with the abbreviation “D.O.G.E” prominently displayed. The reference to Dogecoin was immediately recognized by crypto investors, who quickly shared their excitement. Many in the community saw Musk’s post as a bullish sign, suggesting that Dogecoin is on its way “to the moon” again. The excitement was further bolstered by Musk’s long-standing reputation as the “Dogefather,” stemming from his earlier posts supporting Dogecoin.
This recent acknowledgment by Musk follows his clarification on crypto stance at The X Takeover event in late July, where he mentioned that while he may joke about digital assets, he would not formally promote them. Nevertheless, he admitted having a soft spot for Dogecoin due to his fondness for dogs and memes.
The effect of Musk’s post was immediate on DOGE’s price. The memecoin, which had seen a 9.3% recovery from an August 5 crash, surged another 6.5% in the last 24 hours, reaching the $0.1056 mark. This significant price movement came after the token dropped from its support above the $0.1 level down to the $0.08 range. Additionally, market activity for Dogecoin spiked by nearly 50%, with its daily trading volume climbing to $699.5 million. These developments have led market observers to speculate that a bullish move for Dogecoin could be on the horizon, with all eyes on an impending breakout.
Crypto trader Galaxy Trading believes that Dogecoin might lead the next charge in the crypto space, suggesting that DOGE often serves as a key signal for the overall market. Other analysts, however, suggest a more cautious outlook. Some contend that a breakout won’t occur until the overall market gains momentum again in the fourth quarter. Crypto analyst Kaleo noted that despite the market recovery, Dogecoin’s position remains largely unchanged, establishing a potential upper bounds of around $0.111 for the new range. He predicted that DOGE’s price would fluctuate between $0.085 and $0.11 with declining volatility until the market heats up again, advising investors to “stack and hold.”
Similarly, renowned analyst Altcoin Sherpa observed that Dogecoin’s chart still looks promising, recommending DOGE as a solid choice for investors seeking a relatively safe meme-oriented asset to hold.
Amidst this enthusiasm and speculation, the Dogecoin community remains eager, bolstered by Musk’s recent implicit endorsement and the strong market performance indicators. With potential market shifts looming, investors and analysts alike continue to watch Dogecoin closely, anticipating its next moves.
