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- Dogecoin price has jumped by 6% as Elon Musk-linked DOGE post fueled sentiments.
- The project has definitive ecosystem updates that might contribute to its growth.
The price of Dogecoin (DOGE) climbed over 6% on the daily timeframe due to positive investor sentiment. Tesla CEO Elon Musk’s ‘Dogefather’ hype also contributed to the memecoin’s recent price rally.
Dogecoin’s Price Trend Following Musk’s Post
According to Santiment data, Dogecoin has been one of the top trending tokens in the crypto market in the last 24 hours. An X post referencing DOGE as the Department of Government Efficiency fueled its increased social volume.
Popular Dogecoin enthusiast and UX/UI designer @cb_doge posted a Lion King-inspired DOGE meme photo featuring Elon Musk. The Department of Government Efficiency accompanied the picture inscribed DOGE.
Musk quickly noticed the post and responded, “Naturally, our official mascot will be the doge.”
Naturally, our official mascot will be the Doge
— Elon Musk (@elonmusk) September 9, 2024
The post triggered positive sentiments in the Dogecoin community, with some members describing Musk as the “Dogefather.” The optimism in the market reverberated across the memecoin market, resulting in a 6% daily surge for DOGE.
At the same time, DOGE progressively entered a major accumulation zone, where investors purchased over 60 billion units. If DOGE continues to rise above this key zone, this could be a major support level. On the contrary, a breakout could also lead to a correction, as some investors may want to sell as soon as they break even.
At press time, DOGE was trading for $0.1039, representing a 6.1% increase in the past day. The trading volume recorded a 44% 24-hour surge to $663 million, with the market cap pegged at $15.17 billion.
Meanwhile, DOGE experienced $2.45 million in liquidations in the past day, with long and short liquidations accounting for $175,450 and $2.27 million, respectively.
Dogecoin’s Future Outlook
As Dogecoin attempts a rally, a crucial price level to look out for is the $0.111 resistance point. The memecoin could rally toward the next resistance around $0.142 if it overcomes $0.111 and fails to see a correction. Analysts claim a successful rise above $0.142 might take DOGE to a six-month resistance level above $0.175.
A recent update from CNF covered popular analyst World of Charts’ forecast of an 8-10% bullish wave for DOGE. Given Musk’s enormous impact on shaping Dogecoin’s market impression, this prediction could hold. Besides, Dogecoin’s Relative Strength Index (RSI) has risen over its midpoint at 59, indicating more bullish momentum.
Other positive developments within the Dogecoin ecosystem could also help propel DOGE to an all-time high. For instance, the Dogecoin Foundation recently announced notable progress in the project through a trail map update.
As discussed earlier, the update outlined a three-phase strategy to enhance Dogecoin. The first phase, which has been completed, was dedicated to open development tools. The second phase focuses on getting more businesses to accept Dogecoin, while the third entails increasing Dogecoin’s scalability via Project Sakura. Project Sakura is just about 10% completed.
