Dogecoin (DOGE), the largest memecoin by market capitalization, recently received confirmation from Tesla CEO on X. Elon Musk’s post sent cryptocurrency investors and the DOGE community into a frenzy, reflecting on the token’s price. After the recent surge, some analysts believe it’s only a matter of time before a major breakthrough occurs.
Elon Musk Excites Dogecoin Community
In a recent post, X Elon Musk admitted to being the leading memecoin by market capitalization in his response to Donald Trump’s political proposal. The former US president revealed that he is open to appointing Musk to an advisory or cabinet position if he wins the election.
In an interview with Reuters, the Republican Party candidate for president called The X owner is a “brilliant guy.” He also suggested he would offer Musk the position if he were open to it. “He’s a very smart guy. I would definitely do it, if he did it, I would definitely do it,” Trump said.
The Tesla CEO took X to respond to the proposal, stating, “I stand ready to serve” and sharing an AI-generated image. The image placed Musk in front of a podium with the words “Department of Government Efficiency” and the acronym “DOGE” at the top.
Cryptocurrency investors were quick to spot the reference and share their excitement over the confirmation. Many in the community took Musk’s post as a bullish sign and suggested that memecoin was “going to the moon” again.
Others revived senior posts by X in which Musk, nicknamed the “Dog Father,” expressed his support for Dogecoin against the global financial system.
The apparent endorsement comes after Musk clarified his stance on cryptocurrencies. As reported by NewsBTC, the CEO made a guest appearance at The X Takeover virtual event in delayed July.
During his intervention, Musk explained that he would not promote cryptocurrencies but could jokingly refer to the digital asset. He also added that he has a pliable spot for Dogecoin due to his fondness for dogs and memes.
DOGE price increases by 6%
Memecoin has seen a 9.3% rebound following the August 5 crash, when it lost support above the $0.1 level and fell into the $0.08 range. Following Musk’s tweet, Dogecoin’s price rose to $0.1056, up 6.5% in the past 24 hours.
Memecoin market activity also increased by almost 50% compared to the previous day, reaching a daily trading volume of $699.5 million. DOGE’s recent results have some market observers believing that there could be a bullish move for the token and that “all eyes are on a breakout.”
Crypto trader Galaxy Trading is considering that memecoin is likely to “lead in the very near future,” given its current performance. According to the trader, DOGE often serves as a “key signal for the entire cryptocurrency space.” He suggested that investors keep an eye on it as it could potentially trigger a broader uptrend in the market.
Some analysts agree that DOGE won’t breakout until the entire market gains momentum again in Q4. Kaleo Crypto Analyst he believes that not much has changed for Dogecoin since the market recovery. However, he noted that the token has set “a potential upper bound of ~$0.111 for the new range.”
According to the analyst, DOGE’s price will hover between $0.085 and $0.11 in the coming months “with decreasing volatility until the market heats up again.” As a result, he suggested investors “accumulate and hold.”
Similarly, renowned Altcoin analyst Sherpa is considering Memecoin chart “still looks good.” Sherpa also believes DOGE is a good choice for investors who want to “hold the meme and be relatively safe.”
Featured image from Unsplash.com, chart from TradingView.com
