Dogecoin’s (DOGE) growth is significantly attributed to support from Tesla (NASDAQ: TSLA) CEO Elon Musk, whose mention of the meme cryptocurrency has attracted investor interest.
Recently, after seemingly taking a break, Musk appears to have resumed promoting DOGE through his X account. One of the latest developments occurred on September 7, when he made a post that was viewed as indirectly alluding to Dogecoin.
The post read, “Department of Government Efficiency,” abbreviated as “DOGE.” It stirred conversation within the Dogecoin community, triggering anticipation of a possible price rally.
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Building on the post, another user with the pseudonym “Dogedesigner” created a meme referencing Musk’s post. The image featured a photoshopped meme of Musk from the movie “The Lion King,” depicting the billionaire as Rafiki holding up Simba, symbolizing Dogecoin alongside the acronym DOGE.
Interestingly, Musk reacted to the post, suggesting that the image should be the mascot of the purported government agency.
Additionally, Musk once again referenced the meme token when recalling his attempts to promote it during his 2021 Saturday Night Live (SNL) appearance. While reminiscing about the moment during an appearance on the All-In Podcast, Musk revealed that he went off script.
Overall, Dogecoin has reacted positively to Musk’s mentions, with the token showing notable short-term strength. Notably, the gains by Dogecoin have likely come as a surprise, considering the meme coin has recently shown minimal reactions to Musk’s mentions.
Dogecoin price prediction
Based on Musk’s renewed promotions, Finbold turned to OpenAI’s latest artificial intelligence tool, ChatGPT-4o, to analyze how Dogecoin might trade in the coming days. The AI tool offered three possible scenarios based on this.
In a bullish case where the SpaceX founder maintains positive mentions about the coin and its possible integration into his companies, DOGE could rally between $0.12 and $0.15 in the short term.
In a moderate case where Musk cools down on his mentions, ChatGPT-4o predicted that Dogecoin could stabilize at its current level, provided the market sentiment remains positive. The tool foresees the meme coin trading between $0.10 and $0.12.
Alternatively, if the general market sentiment remains bearish and Musk’s promotions are viewed as lacking substance, the AI model noted that DOGE could plunge to around $0.08 to $0.09.
On the other hand, with Dogecoin seemingly enjoying short-term bullish sentiments, crypto analyst Ali Martinez, in an X post on September 9, offered several possible price movements at play for the meme coin.
The expert observed that Dogecoin was forming a classic “falling wedge” pattern on the daily chart, typically viewed as a bullish reversal trend. According to Martinez, the cryptocurrency’s ability to maintain a close above the $0.10 mark could trigger a breakout, likely ushering in a rally toward the $0.15 level.
Dogecoin price analysis
At press time, Dogecoin was trading at $0.102, reflecting daily price gains of almost 5%. On the weekly chart, DOGE is up over 5%.
Despite the short-term positive momentum, DOGE’s technical analysis points to a more bearish outlook, possibly aligned with the near-term market sentiment. According to one-day gauges retrieved from TradingView, a summary of the indicators aligns with ‘neutral’ same to moving averages at 8 and 1, respectively. On the other hand, oscillators are for a ‘sell’ sentiment with ratings of 2.
Finally, with the cryptocurrency market showing weakness at the moment, Musk’s mentions of DOGE will go a long way in helping stabilize the price above the $0.10 support level.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
