Musk's tweet could spark Dogecoin's 90% rally
The popular memcoin Dogecoin is getting support from investors and the market. It can't be called strong, but it could contribute to the recovery of the DOGE price.
Dogecoin is testing the limits of what it can do
Dogecoin price is now trying to turn an important resistance into support. This would confirm a bullish breakout. One of the main catalysts for such a rise could be the recent tweet of Ilon Musk. He once again mentioned memcoin, this time in the context of a potential position in Donald Trump's administration. Musk said he is ready to head the âDepartment of Government Efficiencyâ (D.O.G.E. for short).
Musk's tweets often provoke a rise in the value of DOGE. The dynamics of the moving average convergence-divergence indicator (MACD) also speaks in favor of the positive scenario. It shows the strengthening of the general bullish impulse. Market sentiment is beginning to change, promising the potential for a price recovery.
However, one of the key obstacles to this is the behavior of large investors, known as whales.
Right now, they are only minimally increasing their holdings. Over the past two weeks, addresses with balances between $100,000 and $10 million DOGE have seen inflows of just $300 million. The lack of significant accumulation in the segment of these large players indicates a cautious approach, reflecting uncertainty or fluctuations in the market.
The indecisiveness of the whales could ultimately slow the recovery. Without their active participation, the bullish MACD momentum may not translate into a full-blown sustained Dogecoin appreciation.
DOGE forecast: whether to wait for a bullish spurt
Dogecoin is approaching a breakout from the bullish âdescending wedgeâ pattern. A successful breakout of the pattern implies a 90% price increase. This means that the target is set at $0.20.
The factors mentioned above suggest that the rally will have to wait for some more time, as the bullish breakout has not been confirmed yet. This will happen when the $0.1168 level turns into support, allowing the price to rise to $0.1286.
However, there is a risk that the breakout will turn out to be false, as it happened in mid-July. This could cause the DOGE price to drop to $0.10 or lower, which would cancel both the bullish scenario and the pattern.
