- Dogecoin’s price surged 30% within seven days, consolidating its position as the eighth-largest cryptocurrency by market capitalization.
- Elon Musk’s mention of Dogecoin at a Trump rally has reignited interest, sparking a price rally and breaking DOGE’s long-term downtrend.
In the unpredictable world of cryptocurrency, one thing has remained constant: Elon Musk’s ability to influence the market, especially when it comes to Dogecoin (DOGE). Over the past seven days, Dogecoin, the most prominent meme-cryptocurrency, experienced a significant price rally, increasing by 30%. This upward movement has intrigued analysts and traders alike, with many attributing the price hike directly to a comment made by Musk during a political event supporting Donald Trump.
On October 17, during a rally in Pennsylvania, a participant jokingly asked Musk if he would head a hypothetical “Department of Government Efficiency” (DOGE), an acronym that coincidentally matched the name of the meme-based cryptocurrency. Musk’s quick and affirmative response—”Yes, Doge”—triggered a surge of enthusiasm, immediately reflected in the price of Dogecoin. This rally boosted DOGE from $0.11 to $0.14, cementing its place as the eighth-largest cryptocurrency by market capitalization.
Elon Musk and Dogecoin: A Unique Relationship
Musk’s relationship with Dogecoin has long been a fascinating phenomenon that seems to defy conventional market logic. His casual mentions of the meme coin have consistently influenced its value, turning the cryptocurrency into a financial asset tied closely to Musk’s words and actions. This latest price jump is just another chapter in a long history of Musk’s impact on DOGE, which dates back to 2019 when he was humorously elected as Dogecoin‘s “CEO” by the cryptocurrency community.
Dogecoin reached its all-time high of nearly $0.70 in 2021, largely driven by Musk’s tweets and public endorsements. Though the recent rally doesn’t approach these historic levels, it signifies a clear reversal of the bearish trend that DOGE has experienced over the last few months.
According to the technical analysis of renowned crypto analyst Rekt Capital, Dogecoin has successfully broken out of its macroeconomic downtrend. The analyst notes that the cryptocurrency has tested and held a critical support level, which could pave the way for a more sustained upward movement.
The Political Factor and Musk’s Continued Influence
Musk’s influence on Dogecoin isn’t confined to the cryptocurrency space; it has now extended into the political realm. During the Trump rally, Musk’s response to the “DOGE” question was more than a joke—it was an endorsement that reignited excitement among the crypto community. His interactions with politicians and comments about government inefficiency seem to have intertwined with his advocacy for decentralized technologies like cryptocurrency.
Interestingly, Musk’s involvement with the Trump campaign doesn’t end with this offhand comment. In September, Donald Trump announced that Musk would be tasked with leading a team to audit the federal government if Trump wins the 2024 election. This news, combined with Musk’s ongoing critique of government bureaucracies, has only amplified his standing in both political and financial circles, further cementing his ability to sway markets, especially the volatile cryptocurrency sector.
However, as with any market influenced by a single individual’s actions, there are inherent risks. Dogecoin remains vulnerable to price fluctuations, especially if Musk’s attention shifts away from the cryptocurrency or if external market forces cause significant downturns.
Rekt Capital has warned that Dogecoin needs to maintain its newfound support levels around $0.12 to continue its upward momentum. Should DOGE fail to hold this line, the cryptocurrency could retrace to lower levels, potentially undoing the gains seen over the past week. But if support holds, the next targets of $0.16 or even $0.20 are within reach, adding further intrigue to Dogecoin’s future.