Elon Musk's cryptic 'D.O.G.E' post has once again breathed life into Dogecoin (DOGE), offering a potential recovery from its recent downturn. Nearly every time Musk mentions Dogecoin, it results in a rise in the meme coin's value.
However, the uptrend tends to be short-lived. This analysis explores whether the current situation might follow the same pattern.
On September 7, Musk posted again about the Department of Government Efficiency on X and followed it up with an AI-generated image featuring him and the acronym 'D.O.G.E.' Saturday was not the first time Musk made such a post. His previous posts have triggered similar price surges.
The billionaire might have a role in Donald Trump’s administration if Trump wins the next US election. From an on-chain perspective, Musk's action triggered a surge in the cryptocurrency's social dominance, indicating increased discussions around DOGE.
Historically, depending on broader market conditions, this surge impacts the price positively. Consequently, DOGE's price increased while trading at $0.095. According to data from major exchanges, the meme coin might sustain the price increase this time.
According to IntoTheBlock, the broader market seems prepared to buy over 500 million coins valued at more than $50 million, outpacing the sell orders. This trend could push DOGE's price higher than $0.095.
The 4-hour Dogecoin chart shows that the price moved from $0.090 to $0.096 after Musk's post. Although it retraced to $0.095, the MACD suggests a potential move higher. The MACD assesses price trends and can signal bullish or bearish momentum.
The slight divergence between the MACD and Dogecoin's price hints at a positive outlook, suggesting a potential 15% increase to $0.10. However, selling pressure could lower the price to $0.094 or $0.088.
