Dogecoin Price Rallies 16% In One Week Amid Elon Musk Support

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Dogecoin Price as Whales Buy 1.5B DOGE after Musk & Trump’s Tweet – Crypto News

Published

1 year ago

September 30, 2024

Dripp

Dogecoin price broke out of a key bullish reversal structure but faces overhead resistance around $0.15. Breaking through this barrier is crucial for the asset to rally toward the $0.25 mark. Meanwhile, Elon Musk tweeted a poster of him and Donald Trump regarding his earlier proposition of surviving in the D.O.G.E. Will Musk’s hype propel DOGE’s price to new yearly highs?

Donald Trump Retweets Elon Musk’s Post, Dogecoin Price Drops 4%

On September 28, Elon Musk shared a poster of Donald Trump and himself with regard to the Department of Government Efficiency (D.O.G.E) he said he was available to serve in a few months ago. There was also a picture of a Shiba Inu dog, the symbol of the Dogecoin cryptocurrency. Donald Trump retweeted Musk’s post, further sparking bullish sentiment around DOGE. The price of DOGE jumped 3.68% before it began retracing on September 29.

pic.twitter.com/PHPAbiYagy

— Elon Musk (@elonmusk) September 28, 2024

Meanwhile, a recent post has claimed that a whale had purchased over 1.4 billion DOGE worth $176 million. Dogecoin creator Billy Markus (AKA Shibetoshi Nakamoto) reacted to the post, further drawing more attention to the event, wondering if this purchase is what triggered the DOGE price rally on September 27.

The DOGE price has dropped by 4% in the last 24 hours and is trading at $0.1217.

DOGE Price Drop as Traders Book Profits

An analysis of traders’ behavior shows that the Dogecoin price is headed down in the short term as traders lock in the 24% gains added in the last 3 days. A look at the Coinglass crypto derivative visual screener (CDVS) shows traders are closing their longs in losses. When this happens, they usually open Shorts.

DOGE crypto derivative visual screener

However, the Coinglass DOGE liquidation map tells a different story. While there is indeed some selling pressure on the daily timeframe, traders remain overall bullish on Dogecoin on the weekly and monthly timeframes. There are approximately $69 million worth of DOGE Longs, against $55 million in Shorts.

DOGE liquidation map

Additionally, a deeper analysis of the liquidation map shows there is a stronger support between $0.1068 and $0.1200, with the largest long-leverage trades placed at $0.1180 and $0.1100.

Looking at the technical analysis reveals why traders are still bullish on Dogecoin price in the long-term.

DOGE Price Could Rise By 94% After This Happens

Traders seem to be convinced of Dogecoin’s ability to surge higher after it recently broke out of a falling wedge, which is a bullish reversal pattern. This pattern is significant because it spans seven months. A long consolidation time usually results in an explosive move upward.

In addition to this, Dogecoin price has also broken above a mini double bottom but is currently retracing before bouncing higher. This explains why traders on the daily timeframe are closing in losses — to avoid potential liquidation in the retest. However, after the pullback to $0.1100 is complete, there is likely to be an overwhelming amount of buying pressure on DOGE that could send it to $0.25.

Dogecoin price prediction shows that if it breaks below $0.1100 in the current pullback and fails to return above it, it may signal crypto market weakness. What follows next could be a drop lower to $0.1000 or $0.0800, which would invalidate the current bullish thesis.

Frequently Asked Questions (FAQs)

On September 28, Elon Musk tweeted a poster featuring Donald Trump and himself in connection with his earlier statement about serving in the Department of Government Efficiency (D.O.G.E). This led to an initial price jump of 3.68%. However, Dogecoin later retraced and dropped by 4% after Trump retweeted Musk’s post.

Traders are locking in their 24% gains from the recent price surge. Analysis shows that many traders have started closing their long positions in losses due to the pullback, opening new short positions as they anticipate further downward movement in the short term.

If Dogecoin maintains its support levels and breaks through resistance, it could experience a 55% gain, potentially reaching new yearly highs. However, there are several technical factors and market dynamics that traders are watching closely to validate this rally.

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