Why Dogecoin Price May Retest $0.10 After Elon Musk’s Post
Elon Musk's cryptic “DOGE” post breathes life back into Dogecoin (DOGE), potentially recovering from its recent slump. Tesla's billionaire CEO has made similar posts on several occasions, and almost every time these quotes have resulted in an increase in the meme coin's price.
However, DOGE's growth after similar events is short-lived. This analysis examines whether the current situation may follow a pattern.
Elon Musk continues to surrender to Dogecoin.
On Sept. 7, Musk reposted on X about the Department of Government Efficiency following an AI-generated image of him and the acronym “DOGE.” Saturday wasn't the first time. The social media platform made such a post.
In August, BeInCrypto reported the same development that affected the price of Dogecoin, which caused it to jump by 6%. Additionally, the post appears to be in line with speculation that Musk could play a role in Donald Trump's administration if he wins the US election in November.
From an on-chain perspective, Musk's recent move has led to significant growth in cryptocurrency's social dominance. This spike marks an increase in active discussion around DOGE.
Read more: How to buy Dogecoin (DOGE) and everything you need to know
Historically, as with broader market conditions, this sudden surge has had a positive impact on prices. Therefore, DOGE was able to register a price increase as it traded at $0.095.
However, according to data from the top 20 exchanges, MemCoin may continue to rise in price this time around. According to IntoTheBlock, the broader market appears set to bid (buy) more than 500 million coins worth more than $500 million.
This price is more than the 399 million coins allocated for sale (ask). If the buy orders continue to exceed the sell side, the price of DOGE may start moving higher than $0.095.
DOGE Price Prediction: Here comes $0.10 again
According to the 4-hour Dogecoin chart, the meme coin price moved from $0.090 to $0.096 after Elon Musk's post. Although it has retreated slightly to $0.095, the moving average converging divergence (MACD) suggests that it may be higher.
MACD is used to analyze price trends by evaluating momentum through histogram bars. When the indicator is below the signal line, a bearish wave is dominant, indicating a bearish trend.
On the other hand, when it is above the signal line, it shows a higher speed, which can increase the price. A small difference between the MACD and the price of Dogecoin suggests a positive outlook for the coin.
Read more: 10 Best Altcoin Exchanges in 2024
As such, the price of Doge may increase by 15%, which will reach $0.10. However, this forecast may not materialize if selling pressure comes into play. If this happens, the price of Dogecoin may drop to $0.094 or even $0.088.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
