Elon Musk (founder of Tesla) intervened on September 7, 2024 to prevent a steep price drop for Dogecoin.
DOGE fell below the key support level at $0.094, and eventually reached a low price of $0.088.
Musk, amidst this economic downturn shared a D.O.G.E.-named AI image of him on X (formerly Twitter) with slang for the Department of Government Efficiency.
Department of Government Efficiency
The simple posting of the message was crucial to DOGE’s recovery.
DOGE prices rise after Musk’s tweet
The post went viral in just 12 hours, gaining attention from over 44 million people and receiving more than 500,000 “likes”. Dogecoin’s price rose above the critical support level after this surge of online attention.
Analysts warned that without Musk’s prompt intervention, DOGE would have fallen an additional 20% to just $0.071.
Elon Musk’s influence on cryptocurrency markets has been documented, particularly Dogecoin.
The tweet showed how influencers can dramatically change sentiments in the world of digital assets, and lead to an immediate price recovery.
Dogecoin Price Outlook: Potential for 20% Surge
The technical analysis shows that DOGE has reached a critical support level at $0.094, and its Relative Strength Index is forming a divergence in the bullish direction on the daily chart.
Investors can buy this pattern because it often indicates the possibility of a trend reversal, from one down to another.
Analysts suggest that DOGE’s price could rise by 20% in the future to $0.113.
Other technical indicators, such as the 200 Exponential Moving Average, still indicate a downward trend, suggesting a cautious trading approach.
Dogecoin price and trading volume
Dogecoin’s price is currently around $0.0948. This represents a 4,5% increase in the last 24 hours.
Trading volume, however, has decreased by 23 percent in that same time period. This indicates a reduced level of activity from traders amid the current market volatility.
The declining volume indicates that, while the DOGE market is optimistic about its recovery, traders remain cautious and are looking for solid signs of stability.
The post Elon Musk rescues Dogecoin from steep price drop may change as new information is revealed.
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