Dogecoin has seen a notable price increase today, supported by favorable technical trends and a tweet from long-time supporter Elon Musk. The world’s first memecoin has outperformed other top cryptocurrencies like Bitcoin and Ether in the past 24 hours.
Elon Musk’s Tweet Fuels Dogecoin Rally
The price of Dogecoin (DOGE) surged by around 3% in the last 24 hours, reaching $0.106 on September 13. The rally started six days ago when Elon Musk, known for influencing Dogecoin’s price in the past, tweeted about the creation of a new institution called “DOGE” (Department of Government Efficiency).
DOGE/USDT daily price chart. Source: TradingView
Since that tweet, Dogecoin has seen a 16.25% price increase, reminiscent of previous price booms triggered by Musk’s social media posts. This signals traders’ continued enthusiasm for betting on the memecoin’s price movements based on Musk’s influence.
Bullish Trends in the Futures Market
Alongside the recent price gains, Dogecoin has seen a rise in its open interest (OI) and funding rates in the futures market. According to Coinglass, DOGE Futures’ OI grew from $442.37 million on September 7 to $459.18 million by September 13. Additionally, funding rates flipped from negative to positive, indicating growing bullish sentiment. This shift suggests that traders are increasingly optimistic about Dogecoin’s future price movements following Musk’s tweet.
Dogecoin futures OI and funding rates. Source: Coinglass
Technical Indicators Support Dogecoin’s Rebound
From a technical standpoint, Dogecoin’s recent gains are part of a larger rebound occurring within a falling wedge pattern. On September 7, the memecoin bounced off the wedge’s lower trendline, a move that has occurred several times since March. Currently, Dogecoin is facing resistance at its 50-day exponential moving average (EMA), which stands at $0.106. A close above this level could lead to further gains, with a potential price target of $0.193 by year’s end if the wedge breakout plays out as expected.
DOGE/USDT daily price chart ft. falling wedge breakout setup. Source: TradingView
Dogecoin’s combination of strong technical indicators and renewed social media interest continues to make it one of the most watched cryptocurrencies in the market.
