Dogecoin Soars 6.5% After Elon Musk’s Post, Imminent Breakout?

Dogecoin (DOGE), the largest memecoin by market capitalization, recently received acknowledgment from Tesla’s CEO on X. Elon Musk’s post sparked a frenzy among crypto investors and the DOGE community, reflecting on the token’s price. Following the recent surge, some analysts believe it’s only a matter of time before a major breakout.

Elon Musk Excites The Dogecoin Community

In a recent X post, Elon Musk acknowledged the leading memecoin by market cap on his response to Donald Trump’s political proposition. The former US president revealed that he was open to naming Musk for an advisory role or cabinet job if he won the election.

Talking to Reuters, the presidential candidate for the Republican party called X’s owner a “brilliant guy.” He also suggested that he would offer Musk a position if he were open to it. “He’s a very smart guy. I certainly would, if he would do it, I certainly would,” Trump said.

Tesla’s CEO took X to respond to the proposition, stating, “I’m willing to serve,” and sharing an AI-generated image. The image set Musk in front of a podium with the words “Department Of Government Efficiency” and the abbreviation “D.O.G.E” on top.

Musk’s AI-generated image acknowledges DOGE. Source: Elon Musk on X

The crypto investors quickly saw the reference and shared their excitement about the acknowledgment. Many community members took Musk’s post as a bullish sign and suggested that the memecoin is going “to the moon” again.

Others brought back old X posts where Musk, referred to as the “Dogefather,” shared his support for Dogecoin against the global financial system.

The apparent endorsement comes after Musk clarified the crypto stance. As reported by NewsBTC, the CEO made a virtual guest appearance at The X Takeover event at the end of July.

During his intervention, Musk explained that he would not promote crypto but might address digital assets jokingly. Additionally, he added that he has a soft spot for Dogecoin due to his liking of dogs and memes.

DOGE’s Price Surges 6%

The memecoin had experienced a 9.3% recovery from the August 5 crash, when it lost its support above the $0.1 level and dropped to the $0.08 range. Following Musk’s post, Dogecoin’s price climbed to the $0.1056 mark, a 6.5% surge in the last 24 hours.

The memecoin’s market activity also increased nearly 50% from one day ago, reaching a daily trading volume of $699.5 million. DOGE’s recent performance has made some market watchers consider that a bullish move for the token could be coming and that “all eyes are awaiting a breakout.”

Crypto trader Galaxy Trading considers that the memecoin will likely “lead the charge in the very near future” given the current performance. According to the trader, DOGE often serves as a “key signal for the entire crypto space.” He suggested that investors keep an eye on it as it potentially will trigger a wider market uptrend.

Some analysts concur that DOGE’s breakout won’t happen until the whole market gains momentum again in Q4. Crypto analyst Kaleo believes that not much has changed for Dogecoin since the market recovery. However, he noted that the token has established a “potential upper bounds of ~$0.111 for the new range.”