Elon Musk's recent post on X (formerly Twitter), showing him as an executive in the "Department of Government Efficiency," has once again influenced Dogecoin's price. 

Musk's long-standing support for Dogecoin has led to him being dubbed the "Dogefather," and his posts frequently create waves on the cryptocurrency market, especially among Dogecoin enthusiasts.

I am willing to serve pic.twitter.com/BJhGbcA2e0

— Elon Musk (@elonmusk) August 20, 2024

After the post, Dogecoin experienced a 6% price surge, reflecting the strong reaction from the crypto community. 

Prior to the surge, Dogecoin's price had been fluctuating, having fallen to $0.08 in early August after peaking at $0.228 in March, marking a 64.47% decline. 

Currently, the price of Dogecoin is $0.109, with a recent 0.61% increase in the past 24 hours. This is accompanied by a significant decrease in trading volume, down by 32% to $506 million, which signifies a correction.

At press time, all DOGE signals show green.

Investors optimism

The cryptocurrency market in general is experiencing a positive trend. Bitcoin is holding steady above $61,000, which has bolstered investor sentiment and contributed to the overall optimism.

However, the global crypto market cap is $2.24 trillion, a 0.29% decrease over the last day due to a minor market correction.

At press time, BTC is trading at $63,627, down 0.54% in 24 hours. 

Source: CoinMarketCap

Overall investor sentiment is neutral or positive. If BTC price rebounces this week, meme coins are likely to follow its steps. Dogecoin's correlation with BTC is currently at 0.96, which is extremely high.

Price prediction

Over the last week, the DOGE price has risen by around 9%.

Source: CoinMarketCap

If the current decline continues, Dogecoin may find immediate support at $0.110.

However, should buyers manage to push the price above the 50-day Simple Moving Average (SMA) of $0.1133, a renewed bullish movement could occur, within the $0.15-$0.19 range.