- Elon Musk’s D.O.G.E. tweet sparks excitement, driving a brief surge in Dogecoin price.
- Dogecoin rose 6.19% after Musk’s tweet, hitting $0.324 before the rally cooled down with the market trend.
Dogecoin (DOGE) is once again making headlines, following a recent tweet from a long-time supporter, Elon Musk. Musk’s tweets on Dogecoin have historically led to price surges, but this time feels a bit different. Dogecoin is now gaining attention in political circles, with the Tesla CEO’s involvement with President-elect Donald Trump to launch a new initiative called D.O.G.E.
— Elon Musk (@elonmusk) December 22, 2024
The recent tweet from Elon Musk sparked excitement and speculation that it could largely be linking the memecoin. However, D.O.G.E. refers to the political Department of Government Efficiency, a proposed presidential advisory commission in the United States.
Katie Miller will soon be joining DOGE! She has been a loyal supporter of mine for many years, and will bring her professional experience to Government Efficiency. Katie is a deeply experienced communications professional respected by all. Congratulations to Stephen and Katie!…
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) December 22, 2024
Adding fuel to the fire, Trump today announced that Stephen Miller’s wife, Katie Miller, is joining the DOGE team. Still, Elon Musk has not yet responded to this development, leaving many curious about how it might impact the future of Dogecoin.
Dogecoin Price Analysis: Bearish Signals Amid Strong Bullish Momentum
At the time of writing, Dogecoin is priced at $0.3103, with a market cap of $45.7 billion. Historically, Musk’s tweets have often led to price surges, and this time was no different—DOGE saw a 6.19% jump, climbing from $0.3051 to $0.324. However, the rally was short-lived as the broader crypto market experienced a decline.
On the DOGE/USDT 4-hour chart, Dogecoin’s price is currently trading below its 50-day EMA, signaling a short-term bearish trend. The RSI stands at 41, indicating a neutral zone with no extreme overbought or oversold conditions. This suggests that the price could go either way in the near term.
The drop in DOGE’s price comes as Bitcoin fell below $95K, which affected the overall market. Interestingly, the memecoin continues to show a strong correlation with Bitcoin, with a 97% correlation over the past 30 days. This means that DOGE usually moves in the same direction as Bitcoin. Despite the overall market pressure, Dogecoin’s bullish momentum is still visible.
Currently, the Bull Power is at 3.41, showing that buyers (bulls) are in control, while the Bear Power at -6.97 indicates weak selling pressure. This suggests that despite the bearish trend, the bulls are still holding strong, and the market could be in a consolidation phase or waiting for a possible bounce.
Looking ahead, if the memecoin manages to break above $0.38, its next target could be $0.62, potentially reaching an all-time high of $0.74—a 146% increase from current levels. However, if the price drops below $0.253, this bullish outlook would be invalidated.
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