Dogecoin price surged after Elon Musk’s DOGE tweet but faces resistance at $0.1 and 16 billion DOGE could bring supply pressure.
Dogecoin price rose slightly by 0.12% to $0.095 during a less volatile weekend. As the market rallied, Dogecoin price recently rebounded from a bottom of $0.09 as billionaire Elon Musk shared a post on X about the Department of Government Efficiency, abbreviated as DOGE. However, the sustainability of this recovery remains uncertain as Dogecoin approaches multi-month resistance.
Trump and Musk team up to drive Dogecoin price up
Former U.S. President Donald Trump announced during a speech at the Economic Club of New York on Thursday that if re-elected, he plans to work with Tesla founder Elon Musk to establish a government efficiency commission.
In response to the proposal, Musk actively promoted the idea of a government efficiency commission on Twitter X, showing an AI-generated image of himself and the abbreviation DOGE in the post.
The tweet sparked a sudden surge in Dogecoin’s price, reaching a high of $0.095 on Friday. However, the rally may lack sustainability as the asset is trading close to a multi-month resistance trendline at $0.1.
According to Intotheblock analysis, before breaking through $0.1, potential buyers may face supply pressure of nearly 16 billion DOGE from 242.8k addresses. As mentioned earlier, holders are currently at a loss and may sell their assets at a break-even price.
DOGE price awaits major breakthrough
Since last month, the price of Dogecoin has been fluctuating horizontally between $0.115 and $0.091. This consolidation may reflect a lack of initiative from buyers or sellers, but broader chart analysis shows that a falling wedge pattern has formed.
The chart pattern resulted in a steady downtrend within two converging trendlines before a massive breakout by buyers. At press time, DOGE price is $0.095 while the market cap has risen to $13.9 billion.
If the bullish momentum continues, the coin price could rise by 5% and then challenge the major resistance at the overhead trendline. If the sellers continue to defend this dynamic resistance level, Dogecoin price could pull back and chase the $0.08 support level.
Moreover, the dog-themed token trading below the daily EMAS (20, 50, 100, and 200) suggests that the path to the leading resistance is on the decline.
Conversely, a bullish breakout of the wedge pattern will accelerate the bullish momentum and set the Dogecoin price prediction at $0.11 and subsequently $0.144
