- Despite a recent 6% drop, Dogecoin’s price could potentially surge by 113% in the near future, influenced by the social media spat between Elon Musk and Taylor Swift.
- Short-term volatility might precede this gain, with resistance levels around $0.115 and $0.138, while bearish scenarios could see the price test supports at $0.08 and $0.07.
Dogecoin (DOGE) has been exhibiting bullish tendencies recently, despite the broader cryptocurrency market struggling to regain momentum. The recent interaction between Elon Musk and Taylor Swift has reignited speculation about a potential surge in DOGE’s price. While the cryptocurrency experienced a short-term dip of 6%, there are indications that it could soar by as much as 113% in the near future.
Elon Musk and Taylor Swift: A Social Media Influence
Elon Musk’s latest social media exchange with Taylor Swift has sparked renewed interest in Dogecoin. Musk, a prominent figure in cryptocurrency circles, responded on X (formerly Twitter) to Swift’s Instagram post endorsing Kamala Harris for U.S. President. Swift’s post, which featured her cat with a jab at J.D. Vance, quickly gained traction online. Musk, a known Trump supporter, has previously made playful remarks about a government efficiency commission humorously abbreviated as “DOGE.”
Fine Taylor … you win … I will give you a child and guard your cats with my life
— Elon Musk (@elonmusk) September 11, 2024
Given Musk’s history of influencing market trends through his social media presence, many investors are curious whether this high-profile interaction could drive significant gains for Dogecoin. Historically, Musk’s social media activity has had a notable impact on DOGE’s price, leading to speculation about a potential price surge.
Technical Analysis: Short-Term Drops and Long-Term Gains
Despite the optimistic long-term outlook for Dogecoin, short-term trends suggest a possible drop of 6% to around $0.092 before a significant rebound. On the 4-hour chart, Dogecoin had been trending inside a falling channel, with a recent aggressive breakout on September 10. Typically, such breakouts are followed by retests, and failure to confirm these breakouts can lead to false signals.
Data from Coinglass indicates a current imbalance in DOGE Longs and Shorts, with an overwhelming number of Shorts on the daily timeframe suggesting a bearish sentiment. However, the weekly timeframe reveals a predominance of Longs, indicating that overall sentiment is bullish and traders are anticipating a rise in Dogecoin’s price over the longer term.
Resistance Levels and Future Prospects
Dogecoin is currently in a falling wedge pattern on the daily chart, a formation known for resolving to the upside. This pattern has developed over six months, hinting at a potentially significant breakout. Resistance levels are expected around $0.115 and $0.138, with potential targets of $0.17 and $0.21 before reaching new yearly highs.
On the downside, if bearish forces prevail, DOGE may test lower supports at $0.08 and $0.07 if it fails to maintain its current support at $0.092.
While Dogecoin’s price may experience some short-term volatility, the broader trend suggests a potential for substantial gains, influenced in part by high-profile social media events and technical patterns.