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Dogecoin Eyes 40% Boom Thanks to Elon Musk Hopium

By:
Yashu Gola
Published: Oct 18, 2024, 07:23 GMT+00:00

Key Points:

  • Dogecoin has surged 25% this week, outpacing Bitcoin and Ethereum, thanks to Elon Musk’s influence.
  • Musk’s “D.O.G.E will fix it” tweet and his support for a government agency named DOGE boosted market speculation.
  • Technical analysis suggests Dogecoin could rise another 40% by the end of 2024, targeting $0.192.
Dogecoin Elon Musk

In this article:

Dogecoin (DOGE) has surged by approximately 25% week-to-date, reaching $0.136 on Oct. 18, its highest level in three months. Meanwhile, its rally has outpaced major cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), which have gained by over 12% and 9% during the same period.

The broader crypto market has benefited from growing risk-on sentiment, partly driven by better-than-expected earnings reports on Wall Street. Major stock indices like the S&P 500 have flirted with record highs, spilling optimism into riskier assets like cryptocurrencies.

Elon Musk is Behind Dogecoin’s Outperformance

Dogecoin’s performance appears largely tied to the hype surrounding Elon Musk.

On Oct. 15, Musk tweeted, “D.O.G.E will fix it,” in response to a Los Angeles Times article discussing California’s restrictions on his SpaceX company.

Musk’s comment referred to a proposed Department of Governmental Efficiency (D.O.G.E.), a government commission that would streamline bureaucracy if Donald Trump wins the upcoming election.

Musk further fueled speculation during an Oct. 17 town hall event, where he backed Trump and mentioned the idea of a government agency named after the meme-inspired cryptocurrency.

The crowd’s reaction—and Musk’s direct mention of “D.O.G.E.”—seemingly contributed to a nearly 9% price jump for Dogecoin following the event.

Dogecoin’s Technical Analysis: A 40% Boom Underway

From a technical perspective, Dogecoin’s bullish momentum shows potential for further upside.

The cryptocurrency recently broke out of its prevailing falling wedge pattern, characterized by two descending, converging trendlines. A falling wedge pattern typically resolves when the price climbs decisively above its upper trendline and rises to a level at a length equal to the maximum distance between the upper and lower trendlines.

DOGE/USD daily price chart
DOGE/USD daily price chart. Source: TradingView

As of Oct. 18, DOGE had entered the breakout stage of its falling wedge pattern, indicating a potential 40% price increase by the end of 2024. That puts its upside target at around $0.192, aligning with the 0.86 Fibonacci level from its previous decline.

About the Author

Yashu Gola is a journalist focusing on cryptocurrency markets since 2014. He writes for Cointelegraph and CoinChapter and has previously served as the chief editor for NewsBTC.

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