Dogecoin Soars 11% as Elon Musk Expresses Fondness for Memecoin

Over the weekend, Dogecoin (DOGE) experienced an 11% surge, buoyed by the general market’s performance. This significant price increase saw the dog-themed cryptocurrency retesting critical resistance levels, prompting bullish predictions from crypto analysts. Investors were also optimistic following Elon Musk’s recent comments about cryptocurrencies and Dogecoin, the largest memecoin by market capitalization.

Throughout the past week, market watchers have shared their bullish expectations for Dogecoin. Analyst Daan Crypto Trades highlighted DOGE’s strength after it traded above the daily 200 MA/EMA last week and tested a multi-month diagonal trendline. On Monday morning, DOGE attempted to break out of the downtrend line after surpassing the $0.134 resistance level. Daan suggested that Dogecoin’s price could climb higher in the coming weeks if it sustains the $0.13 area.

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Similarly, analyst Crypto Poseidon noted that DOGE’s daily EMA50-200 began to converge, suggesting a possible price expansion beyond the previous yearly high of $0.22. Poseidon added that $0.3 could be on the horizon for DOGE enthusiasts.

As the market recovered, renowned analyst Ali Martinez observed that Dogecoin was exhibiting a pattern it had shown before. According to Martinez, DOGE consolidates in a descending triangle during this phase. Historically, the memecoin rallies 140%-230% during consolidation before retracing about 60%. Martinez advised investors to remain patient as DOGE enters a bull run after the retrace.

As of now, Dogecoin is trading between $0.129 and $0.130, reflecting a 0.5% decrease over the past 24 hours. Despite this minor drop, DOGE has seen a 7.6% increase in the past two weeks and a 5.3% surge over the month.

On Sunday, Tesla CEO Elon Musk participated in The X Takeover event hosted by Tesla Owners Silicon Valley. In a virtual guest appearance, Musk discussed various topics, including technology, space exploration, sustainability, and cryptocurrencies. He clarified that while he would not promote cryptocurrencies, he might make jokes about them in the future. Musk emphasized that he does not hold a negative view of cryptocurrencies, despite his reluctance to endorse them.

Musk acknowledged the merits of cryptocurrencies like Bitcoin (BTC) but expressed a particular fondness for Dogecoin, attributing it to his liking for dogs and memes. He stated, “I’m not going to be promoting crypto—at most, in a joking way. If you see me pumping crypto, it’s not me. I do think there’s merit in Bitcoin and maybe some other cryptos, and I’ve sort of got a soft spot for Dogecoin because I like dogs and memes.”

Musk’s remarks elicited mixed reactions from the DOGE community. Some investors viewed his comments as unfavorable for Dogecoin, suggesting that he no longer supported the memecoin’s adoption. “I guess putting Doge on the Moon is not a real thing he’s considering anymore,” one reply noted. Others believed Musk’s clarification was necessary to dispel any misconceptions that he was against cryptocurrencies. Many investors considered his fondness for DOGE as a positive sign for the memecoin.

Following Musk’s comments, Dogecoin saw an 8% price increase, rising from $0.1204 to $0.1355 overnight.