Dogecoin’s (DOGE) growth is significantly attributed to support from Tesla (NASDAQ: TSLA) CEO Elon Musk, whose mention of the meme cryptocurrency has attracted investor interest.
Recently, after seemingly taking a break, Musk appears to have resumed promoting DOGE through his X account. One of the latest developments occurred on September 7, when he made a post that was viewed as indirectly alluding to Dogecoin.
The post read, “Department of Government Efficiency,” abbreviated as “DOGE.” It stirred conversation within the Dogecoin community, triggering anticipation of a possible price rally.
Building on the post, another user with the pseudonym “Dogedesigner” created a meme referencing Musk’s post. The image featured a photoshopped meme of Musk from the movie “The Lion King,” depicting the billionaire as Rafiki holding up Simba, symbolizing Dogecoin alongside the acronym DOGE.
Interestingly, Musk reacted to the post, suggesting that the image should be the mascot of the purported government agency.
On the other hand, with Dogecoin seemingly enjoying short-term bullish sentiments, crypto analyst Ali Martinez, in an X post on September 9, offered several possible price movements at play for the meme coin.
The expert observed that Dogecoin was forming a classic “falling wedge” pattern on the daily chart, typically viewed as a bullish reversal trend. According to Martinez, the cryptocurrency’s ability to maintain a close above the $0.10 mark could trigger a breakout, likely ushering in a rally toward the $0.15 level.
Dogecoin price analysis
At press time, Dogecoin was trading at $0.102, reflecting daily price gains of almost 5%. On the weekly chart, DOGE is up over 5%.
Despite the short-term positive momentum, DOGE’s technical analysis points to a more bearish outlook, possibly aligned with the near-term market sentiment. According to one-day gauges retrieved from TradingView, a summary of the indicators aligns with ‘neutral’ same to moving averages at 8 and 1, respectively. On the other hand, oscillators are for a ‘sell’ sentiment with ratings of 2.
Finally, with the cryptocurrency market showing weakness at the moment, Musk’s mentions of DOGE will go a long way in helping stabilize the price above the $0.10 support level.
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