Elon Musk once again made headlines in the crypto world when he mentioned Dogecoin while expressing his support for Donald Trump. As a result, the price of DOGE skyrocketed, reaching a three-month high.
Elon Musk's mention of âDOGEâ sparked a protest
Dogecoin's recent price surge began after Musk's comments during a town hall event on October 17, where he endorsed Donald Trump for the upcoming U.S. presidential election in November. During the event, Musk proposed an idea for a government agency called the Department of Government Efficiency (DOGE), which coincidentally has the same acronym as Dogecoin's stock symbol.
This immediately sparked excitement among Dogecoin enthusiasts, leading to a 25% price increase for the token over the past week. Musk has a well-known history of influencing the price of Dogecoin through his social media posts and public statements. His statements played a major role in DOGE's 64,000% increase from March 2020 to May 2021, earning him the title of "Father of Dogecoin" in the crypto community.
Dogecoin Enters Falling Wedge Pattern Breakout Phase
Cryptocurrency analyst Yasu Gola provided insight into Dogecoinâs technical landscape, noting that the recent gains were part of a breakout from a falling wedge pattern. Analysts traditionally view this pattern as a signal of an impending bullish reversal, which is typically resolved when the price breaks above the upper trendline.
Today, DOGE broke out of a falling wedge pattern, testing the upper trendline support near $0.105 before rebounding sharply. According to Gola, Dogecoin could target the next resistance near $0.19, which corresponds to the 0.786 Fibonacci level, by the end of 2024. However, DOGE's RSI has spiked above 70, indicating overbought conditions. This typically leads to a consolidation or correction phase, and Dogecoin is likely to revisit the 0.236 Fibonacci support around $0.122 by the end of October.
As Dogecoin surges in price, traders and enthusiasts alike are closely watching its next moves. The impact of Muskâs words, combined with technical analysis, suggests the meme coin could see further volatility in the coming weeks.
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