2024-9-8 11:24 |
Elon Musk’s cryptic “D.O.G.E” post has once again breathed life into Dogecoin (DOGE), offering a potential recovery from its recent downturn. The billionaire CEO of Tesla has made similar posts on several occasions, and nearly every time, these mentions spark a rise in the meme coin’s value.
However, DOGE’s uptrend after similar events tend to be short-lived. This analysis explores whether the current situation might follow the pattern.
Elon Musk Continues to Give Dogecoin a HandOn September 7, Musk posted again about the Department of Government Efficiency on X and followed it up with an AI-generated image featuring him and the acronym ” D.O.G.E.” Saturday was not the first time Musk, who also doubles as the owner of the X social media platform made such a post.
In August, BeInCrypto reported a similar development that affected Dogecoin’s price, causing it to jump by 6%. Furthermore, the post appears to be in line with the speculation that Musk might play a role in Donald Trump’s administration if he wins the November US election.
From an on-chain perspective, Musk’s recent action triggered a notable surge in the cryptocurrency’s social dominance. This spike implies an increase in the active discussion around DOGE.
Read more: How To Buy Dogecoin (DOGE) and Everything You Need To Know
Dogecoin Social Dominance. Source: SantimentHistorically, depending on the broader market condition, this sudden surge positively impacts the price. Consequently, DOGE has been able to notch a price increase while trading at $0.095.
However, according to data obtained from the top 20 exchanges, the meme coin might be able to sustain the price increase this time. According to IntoTheBlock, the broader market seems prepared to bid (buy) over 500 million coins, which are valued at over $50 million.
This value is much more than the 399 million coins allocated to be sold (ask). If the buy orders continue to outpace the sell side, DOGE’s price could begin a move higher than $0.095.
Dogecoin Exchange Onchain Market Depth. Source: IntoTheBlock DOGE Price Prediction: Here Comes $0.10 AgainAccording to the 4-hour Dogecoin chart, the meme coin’s price moved from $0.090 to $0.096 after Elon Musk’s post. While it has retraced slightly to $0.095, the Moving Average Convergence Divergence (MACD) suggests that it could move higher.
The MACD is used to analyze price trends by assessing momentum through its histogram bars. When the indicator is below the signal line, bearish momentum dominates, signaling a potential price decline.
On the other hand, when it is above the signal line, it indicates bullish momentum, suggesting the price could rise. The slight divergence between the MACD and Dogecoin’s price hints at a positive outlook for the coin.
Read more: 10 Best Altcoin Exchanges In 2024
Dogecoin 4-Hour Analysis. Source: TradingViewAs such, DOGE’s price could produce a 15% increase that takes it to $0.10. However, this forecast might not come to pass if selling pressure comes into play. If this happens, Dogecoin’s value might drop to $0.094 or as low as $0.088.
The post Elon Musk’s Tweet Boosts Dogecoin (DOGE) Price: What’s Next appeared first on BeInCrypto.
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