Dogecoin (DOGE), the leading meme coin in the crypto sphere, witnessed a notable uptick on Thursday, propelled by the influential backing of Tesla and SpaceX tycoon Elon Musk, a longstanding advocate of the digital asset.
Musk once again showcased his support for Dogecoin through a cleverly crafted social media post, triggering a surge in the token’s value and stirring reactions across the cryptocurrency community.
Elon Musk’s DOGE Humor Boosts Price, Michael Saylor Chimes In
In a characteristic move on Thursday, the tech mogul, who now owns the social media platform X (formerly Twitter), addressed two topics in a single post.
Elon Musk referenced former President Donald Trump’s proposal for him to spearhead a government efficiency commission, encapsulating the idea with the phrase “Department Of Government Efficiency,” cleverly abbreviated as DOGE.
This playful nod not only fueled a rally in Dogecoin’s price but also prompted responses from industry figures like Michael Saylor, a prominent Bitcoin proponent, who retorted with the acronym “Banish, Tedious, Complexity” (BTC), underscoring the enduring appeal of Bitcoin.
This recent episode follows Musk’s earlier engagement with the Dogecoin community, where an X post featuring an image of the billionaire spelled out the word DOGE, triggering a price resurgence for the cryptocurrency.
Subsequently, DOGE’s value experienced a revival, inching closer to the $0.10 mark. Despite a modest pullback, the token secured a 2% increase on Sunday, reclaiming the $0.096 threshold.
Dogecoin Price Analysis
Musk’s latest social media intervention has propelled Dogecoin towards $0.101, marking a substantial surge of nearly 4% over the past week and over 2% within the last 24 hours.
Nonetheless, the daily trading volume for the meme coin has not mirrored this bullish momentum. CoinGecko data indicates a $508 million trading volume in the last 24 hours, reflecting a 10% decline amidst broader market uncertainties.
Preventing further gains for the token, DOGE is still trading just below its 200-day exponential moving average (EMA) at $0.107, which could act as a short-term resistance wall for bullish investors in the scenario that the current momentum continues.
This is also because Dogecoin has seen additional downward pressure in longer time frames, amounting to nearly 4% over the past month, mirroring the struggles of major cryptocurrencies that have failed to regain higher levels.
Furthermore, the prevailing bearish market sentiment, compounded by the lack of significant macroeconomic catalysts, has hindered the potential for further price upside across the digital asset landscape.
Featured image from DALL-E, chart from TradingView.com