Much Wow, Dogecoin Go Woof

Dogecoin, the top memecoin by market cap, has surged over 10% in the last 24 hours, part of a broader memecoin recovery, what’s the connection to Elon Musk?

An 11-year-old memecoin, Dogecoin is one of the best-performing major digital assets this month and Doge is driving the crypto conversation thanks to this year’s memecoin phenomenon. Woof.

Trading at $0.1262, DOGE hit its highest price since September 29, marking a 44% increase from its local low of $0.08888 on September 6.

Source: Trading View

Increased trading activity accompanied the price rise, with DOGE’s trading volume exceeding $1.8 billion on October 16—a 95% jump in 24 hours and 165% over the week. Its market capitalization reclaimed the $18 billion mark, maintaining its status as the largest memecoin, according to Brave New Coin data. DOGE also became the most traded memecoin on October 16, surpassing Pepe by over $600 million in volume.

What’s driving this bullish momentum? Many traders expect Dogecoin to extend this rally, breaking its months-long downtrend. Analysts have pointed out that DOGE’s price recently broke above a 180-day descending trendline, suggesting that key resistance levels at $0.13 and $0.14 could be tested next.

Adding fuel to the fire, technical indicators like the moving average convergence divergence (MACD) flashed bullish signals as the MACD line crossed above the signal line, indicating the market’s favor has shifted toward the upside. DOGE has also flipped key levels into support, including the 50-week and 100-week simple moving averages at $0.1196 and $0.097, respectively. This suggests that a further rise toward the March 18 high of $0.2286 could be on the cards.

However, not all traders are convinced of a quick rebound. Futures markets show some skepticism, with over $587,000 in short positions at risk if DOGE reaches $0.130, where the 200-day simple moving average lies. Meanwhile, a dip to $0.114 could lead to $1.73 million in long positions being liquidated.

The Elon Musk Connection

As expected, social media speculation has also contributed to DOGE’s recent rise. Elon Musk, long associated with DOGE, has re-entered the conversation.

Musk has suggested a “Department of Government Efficiency,” which he has humorously linked to the DOGE acronym. This connection, along with Musk’s history of promoting DOGE on X (formerly Twitter), has sparked hope among traders for further price gains. As the market begins to expect that Trump will win the election, this is driving the market forward.

Source: X

Another Tesla DOGE Connection?

It has been possible to buy merch from Tesla using DOGE for some time. During the unveiling of Tesla’s new autonomous vehicle, the “Cybercab,” a Shiba Inu—Dogecoin’s symbol—was displayed prominently, sparking excitement among DOGE fans.

The presentation took place on a Hollywood film set, where Musk arrived in the Cybercab, catching the attention of both car enthusiasts and crypto followers. The vehicle, showing Tesla’s push for autonomous technology, featured the Shiba Inu, connecting it directly to Dogecoin, sparking speculation about Tesla possibly accepting Dogecoin as payment.

Source: X

Over the last week, DOGE has climbed nearly 18%, making it the best-performing crypto in the top 40. Musk’s continued support for the coin, including teasing DOGE as a payment option for X and promoting DOGE payments in the Tesla Store, has kept the memecoin in the spotlight despite its high volatility.

While Dogecoin remains 83% below its 2021 peak, it’s still among the most valuable cryptocurrencies, with a loyal fanbase keeping it relevant in the ever-changing crypto landscape.

For a full history of DOGE, the little memecoin that could, and would, and continues to do, read this. Woof.