Elon Musk fuels Dogecoin hype once again – Will this help DOGE prices?

• Dogecoin’s social activity surged, fueled by Elon Musk.
• DOGE struggled with low volatility, but price could soon be squeezed out of the narrow range.

Dogecoin [DOGE] has been trending sideways since the second week of August, but there is hope of a big directional move.

The memecoin experienced a surge in social activity in the last two days, suggesting that it was receiving more attention.

Dogecoin was one of the top trends on X (formerly Twitter) in the last 24 hours. This was largely thanks to Elon Musk, who brought back the hype with a recent tweet.

Musk’s tweet was in response to a follower’s suggestion that Trump should create a new institution called the Department of Government Efficiency (DOGE).

The SpaceX CEO’s association with Dogecoin has almost always had an impact with the memecoin’s price action. This is also the same for sentiment around DOGE.

Unsurprisingly, Dogecoin’s social searches saw a bit of an uptick this week, although not by a big margin.

Source: IntoTheBlock

This hype around the Elon Musk tweet is timely, given Dogecoin’s press time price level. The memecoin has been trading in a wedge pattern, underpinned by descending resistance and ascending support lines.

Can DOGE summon fresh momentum?

The key point to note is that DOGE’s recent sideways price pattern occurred just as the price entered a squeeze zone.

In short, a resurgence in volatility could result in a major move, possibly resulting in a breakout or break down from the wedge pattern.

Source: TradingView

Although Dogecoin has achieved some upside in the first half of this week, weak bullish momentum failed to push out of the range. This was evident in the RSI’s inability to break above the 50% level.

A breakout above the same level would likely confirm the resurgence of strong bullish momentum, also possibly pushing above the current short-term resistance, with a breakout target above $0.11.

Dogecoin’s $0.10 press time price represented a 53% discount from its YTD high in March, hence the lower price may encourage accumulation.

Dogecoin’s balance by time held indicates that significant levels of accumulation have been taking place. For example, there were less than 4 million HODLers during its peak in March.

There were now more than 4.3 million HODLers with DOGE in their wallets, as per the latest data.

Source: IntoTheBlock

Cruisers or swing traders peaked at 2.3 million addresses at the start of April, but latest data indicated the presence of 2 million addresses.

This is likely due to the continuous downside, which has been more conducive for dip buyers.

Read Dogecoin’s [DOGE] Price Prediction 2024-2025

Dogecoin traders peaked above 791 million addresses in February and currently and was down to 112820 addresses at press time.

This once again confirmed the growing focus on HODL culture, which may favor DOGE bulls in the long term.