Key Insights

• Dogecoin jumps 12.79%, reaching $0.1669, driven by Musk’s proposed ‘D.O.G.E.’ department.
• Musk’s comments fuel speculation about Dogecoin’s ties to Trump’s 2024 campaign.
• Technical analysis shows overbought conditions, hinting at potential retracement or continued bullish momentum.

Dogecoin (DOGE) has experienced a sharp increase in value over the past day, surging by 12.79%, according to Coingecko. This increase comes as the broader crypto market shows signs of recovery, with DOGE outperforming other top 100 coins in the past 24 hours. Over the past week, the coin has seen a 18.61% rise. This bullish momentum has pushed Dogecoin’s price to $0.1669 at press time, the highest level since June, based on data from CoinGecko.

The recent surge in Dogecoin’s price signals renewed investor interest and suggests a potential return of market confidence. DOGE’s latest performance comes amidst a wave of optimism in the crypto sector, with several other digital assets also showing gains.

Musk’s D.O.G.E. Proposal Boosts Dogecoin Price

The price surge of Dogecoin is being linked to Tesla and SpaceX CEO Elon Musk’s recent remarks at a Trump rally at Madison Square Garden on October 27. At the event, Musk endorsed the creation of a proposed Department of Governmental Efficiency (D.O.G.E.), a possible addition to Donald Trump’s administrative agenda should he win the 2024 U.S. presidential election. 

The proposed name of this department coincidentally shares its abbreviation with Dogecoin’s ticker symbol, creating a fresh wave of excitement around the cryptocurrency.

Musk’s comments have reignited speculation about Dogecoin’s potential ties to future government initiatives, despite his earlier decision to step back from actively promoting cryptocurrencies after a federal lawsuit. 

Musk’s unexpected support for the proposed D.O.G.E. has sparked interest within the crypto community, adding momentum to DOGE’s price rise. Additionally, Musk shared a meme featuring himself alongside the Dogecoin avatar on his social media platform X, further amplifying the coin’s visibility and popularity.

Crypto Community Reacts to Musk’s Comments

The crypto community responded with enthusiasm to Musk’s endorsement of the proposed D.O.G.E., with speculation that it could impact the broader market. Paul Howard, a senior director at the crypto trading firm Wincent, noted that Dogecoin is now being associated with Trump’s campaign momentum, attributing the surge to Musk’s presence in political discussions. 

Howard pointed out that Musk’s involvement in the campaign indirectly connects Dogecoin to the upcoming U.S. presidential election, suggesting that political factors may continue to influence DOGE’s market performance.

Musk’s earlier support of Trump included sporting a “Make America Great Again” cap and self-identifying as “Dark MAGA.” At that time, his support led to price spikes in related meme tokens like MAGA and Dark MAGA (DMAGA), which saw gains of 20% and 227%, respectively. As the 2024 presidential election approaches, market watchers are keenly observing potential impacts of political developments on various cryptocurrencies, including Dogecoin.

Technical Analysis Indicates Bullish Trend for DOGE

Analyzing the technical aspects of Dogecoin’s recent performance, the DOGE/USDT trading pair broke above the upper Bollinger Band, indicating strong bullish momentum. Such breakouts often suggest that the asset is in an overbought condition, which could lead to a short-term retracement or consolidation before any further gains. In the event of a pullback, the middle Bollinger Band at approximately $0.1328 could serve as a key support level.

Source: TradingView

The Moving Average Convergence Divergence (MACD) indicator also supports this bullish trend, with both the MACD line and the signal line rising, reflecting increased upward momentum. The widening MACD histogram further indicates growing buying pressure, signaling that the bullish trend may continue if the MACD remains positive. 

Meanwhile, the Relative Strength Index (RSI) has reached a reading of 75.79, suggesting overbought conditions. While such high RSI levels can sometimes lead to corrections, they also often coincide with strong upward trends, indicating the possibility of further price gains for Dogecoin.