The broader crypto market has recorded a notable recovery today, rebounding nearly 2% to $3.81 trillion at the time of writing.
Alongside BTC price and altcoins, the meme coins also ride the wave of the recent sentiment in the market.
The leading player in the meme coin space, Dogecoin price, led the gains and added nearly 3% in its daily chart.
This indicates that the market participants are actively betting on the speculative assets amid the shifting tide in favor of the digital assets.
Besides, the recent gains in the meme coin could be partially attributed to the latest comment from the self-proclaimed “DOGE FATHER” Elon Musk.
The tech mogul and Tesla CEO has recently made a comment on Bitcoin and Dogecoin, which might have fueled the market interest.
It’s worth noting that Elon Musk has actively shared posts on social media regarding the digital assets, especially Dogecoin.
Previously, these developments have also helped gain in the meme coin, indicating his strong influence in the market.
So, let’s take a quick look at the potential reasons that may be driving the DOGE price higher. In addition, we would also evaluate what the market pundits are projecting for the future trajectory of Dogecoin price.
Dogecoin Price Soars, Rally to Sustain?
DOGE price today was up more than 2.6% and traded at $0.201, and its trading volume fell 37% to $3.19 billion. The crypto has touched a 24-hour high of $0.208, while soaring from a one-day low of $0.1956.
It’s worth noting that the surge in Dogecoin price comes after a massive selloff recorded in the broader crypto market. The impact of the selloff is also evidenced in the weekly and monthly charts of the meme coin.
For context, the DOGE price has lost more than 20% in the weekly chart, while losing around 24% over the last 30 days.
However, the latest derivatives and on-chain data suggest that the crypto has more space to go towards the north.
For context, Dogecoin Futures Open Interest data by CoinGlass showed a surge of 1.5% to around $2 billion. Besides, the Relative Strength Index (RSI) was at 43, indicating that the crypto was hovering near the “oversold” condition.
DOGE Father Elon Musk Lauds Dogecoin
The recent surge could be partially attributed to the recent comments of the tech mogul Elon Musk.
The self-proclaimed “DOGE FATHER” has recently lauded Dogecoin alongside Bitcoin, which has fueled market interest in the meme coin.
Having said that, it appears that the Dogecoin price is riding on the bullish wave triggered by the recent mention of Elon Musk.
For context, Elon Musk responded to a post by financial market expert “zerogedge” on X, agreeing that Bitcoin’s energy-based model makes it immune to government manipulation.
When a Dogecoin community account, “Sir Doge of the Coin,” pointed out that Dogecoin is also based on energy, Musk agreed, sparking interest among traders.
Meanwhile, this isn’t the first time Musk has expressed support for Dogecoin. In the past, he has frequently posted on social media about the crypto, often humorously referring to it as “the people’s crypto.”
The DOGE Father’s affinity for DOGE dates back to 2019, when he began posting about the meme-based cryptocurrency.
In 2021, Dogecoin’s price skyrocketed after Musk’s appearance on Saturday Night Live, where he referred to DOGE as “a hustle.”
Musk’s endorsement has significant implications for Dogecoin price action. Notably, Musk’s influence on the crypto market is well-documented, and his recent comments have reignited interest in DOGE.
The broader crypto market has also been buoyed by Musk’s comments on the importance of energy in the digital age.
He believes that governments will fund the AI arms race, which has bolstered investors’ confidence in assets like Bitcoin and Dogecoin.
What Lies Ahead for Dogecoin Price?
Amid the ongoing surge in Dogecoin price, analysts have also shared bullish forecasts for the asset.
Besides, they have also revealed key price levels to watch, which may indicate the potential future movements of the meme coin.
For context, in a recent X post, analyst Ali Martinez said that DOGE price must hold the support at $0.16 to continue its upward momentum.
Besides, he noted that if DOGE price holds this support, it may continue its run towards $0.48.
Echoing a similar sentiment, analyst Trader Tardigrade said that Dogecoin price may rally to as high as $0.9 in the near future. However, he noted that the crypto must hold the support at $0.20.
Considering all these aspects, it seems that DOGE may continue its run towards the north, especially if Elon Musk continues to back the asset.
However, the ongoing geopolitical tensions and other market concerns may hinder the rally in the near future.