Dogecoin’s (DOGE) rise is largely due to support from Tesla (NASDAQ: TSLA) CEO Elon Musk, whose mention of the meme cryptocurrency has attracted investor interest.
Recently, after what seemed like a hiatus, Musk appears to have resumed promoting DOGE via his X account. One of the most recent developments occurred on September 7, when he made a post that was seen as an indirect reference to Dogecoin.
The post read “Department of Government Efficiency,” or “DOGE” for short. It sparked discussion in the Dogecoin community, raising expectations for a possible price rally.
Building on the post, another user with the handle “Dogedesigner” created a meme referencing Musk’s post. The image was a photoshopped version of Musk’s meme from The Lion King, depicting the billionaire as Rafiki holding Simba, the symbol for Dogecoin, along with the acronym DOGE.
Interestingly, Musk responded to the post by suggesting that the image was meant to be the mascot of a supposed government agency.
On the other hand, since Dogecoin appears to be experiencing a short-term bullish sentiment, crypto analyst Ali Martinez suggested several possible price moves for the meme coin in his September 9 X post.
The expert noted that Dogecoin is forming a classic falling wedge pattern on the daily chart, which is usually seen as a bullish reversal trend. According to Martinez, the cryptocurrency’s ability to hold a close above $0.10 could trigger a breakout, likely kicking off a rally toward $0.15.
Dogecoin Price Analysis
At the time of publication, Dogecoin was trading at $0.102, representing a daily price increase of almost 5%. On the weekly chart, DOGE is up more than 5%.
Despite the short-term positive momentum, DOGE technical analysis points to a more bearish outlook, possibly in line with short-term market sentiment. According to one-day indicators obtained from TradeViewThe indicator summary corresponds to “neutral” values of the moving averages at 8 and 1, respectively. On the other hand, the oscillators indicate “selling” sentiment with a rating of 2.
Finally, given that the crypto market is currently showing weakness, Musk’s mentions of DOGE will go a long way in stabilizing the price above the $0.10 support level.
Disclaimer: The content of this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
