- Dogecoin (DOGE) sees a significant resurgence of interest, driven by a tweet from Elon Musk.
- Technical analyses suggest a potential upward movement if certain resistances are overcome.
Elon Musk, CEO of Tesla and known for his impactful influence on crypto markets, has once again sparked a wave of enthusiasm. A recent tweet playfully linking Dogecoin (DOGE) to the “Department of Government Efficiency” has stirred up excitement and triggered a sharp increase in the coin’s trading volume.
Department of Government Efficiency pic.twitter.com/HFeHYNIkJN
— Elon Musk (@elonmusk) September 7, 2024
The Influence of a Single Tweet
The power of Musk’s social media presence is undeniable, and his latest tweet is a clear demonstration of this. The mention of Dogecoin not only revitalized the Dogecoin community but also brought a fresh surge of activity across the entire meme-coin sector. According to data from Santiment, Dogecoin became one of the most discussed tokens in the past 24 hours, illustrating the significant impact of Musk’s statements on investor sentiment.
The reaction from the community was swift. Indeed, a meme inspired by “The Lion King,” posted by cb_doge, a popular influencer within the Dogecoin ecosystem, quickly caught Musk’s attention. This interaction helped to foster a positive atmosphere around DOGE and led to an overall 8% increase in the meme-coin sector within a single day.
Market Dynamics and Technical Outlook
On-chain analysis indicates that this progress has propelled Dogecoin into a significant accumulation zone. Here, investors have acquired over 60 billion DOGE tokens, potentially establishing a new level of support.
As of the time of writing, Dogecoin is trading around $0.103, marking a 6% increase on the day. In the last 24 hours, positions worth $2.45 million have been liquidated, including $2.27 million in short positions. Technical analysis suggests that DOGE is moving within a descending wedge on the 12-hour chart, indicating that selling pressure is gradually easing. A break above the resistance at $0.111 could pave the way for a rise toward $0.142 or even $0.175 in the event of a broader breakout.
Moreover, Dogecoin‘s Open Interest (OI), currently standing at $480 million, needs to increase to support this upward momentum. The Relative Strength Index (RSI) at 59 and the entry of the stochastic oscillator into the oversold zone provide mixed signals and require vigilance.