On September 7, 2024, Elon Musk, founder of Tesla, intervened just in time to save Dogecoin (DOGE) from a sharp price decline.
As the broader cryptocurrency market faced bearish sentiment driven by large sell-offs from institutional investors and crypto “whales,” DOGE dropped below its key support level of $0.094, eventually touching a low of $0.088.
Amid this downturn, Musk shared an AI-generated image of himself with the nickname “D.O.G.E.” on X (formerly Twitter), along with a reference to the Department of Government Efficiency.
Department of Government Efficiency
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This simple act of posting turned out to be crucial in halting DOGE’s slide.
Musk’s post boosts DOGE price recovery
The post quickly went viral, garnering attention from 44 million users and accumulating over 500,000 likes within 12 hours. This surge in online attention had a profound impact on Dogecoin’s price, which bounced back above its critical support level.
Without Musk’s timely intervention, analysts warned that DOGE could have plunged by an additional 20%, taking the price down to $0.071.
Elon Musk’s history of influencing cryptocurrency markets, especially Dogecoin, has been well-documented.
His tweet once again demonstrated how sentiment in the digital asset world can be dramatically swayed by influencers, leading to a swift price recovery.
Dogecoin price outlook: potential for a 20% surge
Technical analysis indicates that DOGE is currently at a crucial support level of $0.094, with its Relative Strength Index (RSI) forming a bullish divergence on the daily chart.
This technical pattern often signals the potential for a reversal from a downtrend to an uptrend, offering a buy signal for investors.
Market analysts suggest that if the momentum holds, DOGE could see a 20% surge in the near future, reaching levels of $0.113.
However, other technical indicators such as the 200 Exponential Moving Average (EMA) still point to a downtrend, suggesting a cautious approach for traders.
Dogecoin’s price movement and trading volume
As of press time, Dogecoin is trading around $0.0948, reflecting a 4.5% price surge over the past 24 hours.
However, trading volume has dropped by 23% in the same period, signaling reduced activity among traders amidst the ongoing market volatility.
This declining volume suggests that while there’s optimism surrounding DOGE’s recovery, the market remains cautious as traders look for more solid signs of stability.
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