Dogecoin price has crashed this year as sentiment among meme coins wanes. It has retraced by double digits from its 2024 high as investors wait for a catalyst. One catalyst may be a $5,000 stimulus check being mulled by Elon Musk’s led DOGE team.
Dogecoin Price May Pump as Elon Musk Mulls Stimulus Checks
A potential catalyst for the Dogecoin price is a potential DOGE dividend. The dividend will be in the form of a $5,000 stimulus check sent to American taxpayers using the savings that the Department of Government Efficiency or DOGE has found.
Elon Musk and Scott Bessent, the Treasury Secretary, said that the DOGE team has already saved taxpayers $50 billion so far. Bessent added that the savings will likely be more as the team’s work continues. Elon Musk believes that the total savings could get to $2 trillion.
James Fishback, an American executive recommended that DOGE should consider distributing the savings to taxpayers. He said:
“President Trump and Elon Musk should announce a ‘DOGE Dividend’—a tax refund check sent to every taxpayer, funded exclusively with a portion of the total savings delivered by DOGE.”
In response to the X post, Elon Musk said that he would speak with the president about it. Such a stimulus check would likely lead to higher crypto prices mirroring to what happened in 2020 and 2021. At the time, Trump’s and Biden’s stimulus checks helped to push Bitcoin and DOGE prices higher.
However, it is unclear whether the stimulus checks will come as officials will be afraid of stimulating inflation. Also, a report by Bloomberg estimates that the real figure of the total savings so far is $16 billion.
DOGE Price Analysis: Elliot Wave Points to a Surge
The Dogecoin price chart shows that the coin may stage a strong comeback in the coming weeks. It recently crashed from a high of $0.4842 in November to a low of $0.2 this year. Its lowest point was a notable level since it was slightly above $0.2287, its highest swing in March last year. That is known as a break-and-retest pattern, which is a highly bullish sign.
An Elliot Wave analysis shows the value of DOGE is in currently in the fourth wave, which is a corrective one. This performance means that the coin will then move to the bullish fifth wave. A conservative move to last year’s high of $0.48 would be a 90% surge from the current level.
The bullish DOGE price forecast will become invalid if the coin crashes below the key support level at $0.20.
Frequently Asked Questions (FAQs)
A launch of a $5,000 stimulus check through a DOGE dividend would likely boost Dogecoin and other cryptocurrencies.
Odds of the US giving out stimulus checks are limited because of the inflation it would bring. Also, it is unclear whether the DOGE savings will be enough to give all taxpayers $5,000.
Elliot Wave suggests that the Dogecoin price will surge. The initial target for the coin will be the psychological point at $0.35, followed by last year’s high of $0.48.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/will-dogecoin-price-pump-as-elon-musk-led-doge-mulls-5000-stimulus-checks/
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