- Dogecoin has formed a double-bottom pattern at $0.1445 and could rally 132% to $0.3753 if it breaks above $0.2596.
- The Trump-Musk feud over EV credits and SpaceX funding will unlikely affect DOGE price movements.
- Technical analysis shows more promise than political drama for driving the next major price move.
Dogecoin trades near $0.16 today, with significant daily trading volume of over $800 million. The cryptocurrency has declined 38% from its May peaks, yet technical indicators suggest a potential rally ahead. Market capitalization remains stable at approximately $24 billion despite recent selling pressure.
The meme cryptocurrency has faced sustained bearish momentum since June. Investor sentiment remains subdued as the broader crypto market experiences volatility. Trading activity increased 13% in the past day, indicating renewed market interest. Volume patterns suggest institutional participation may be returning to DOGE markets.
Double-Bottom Formation Points to Recovery
Technical analysis reveals a double-bottom pattern forming at the $0.1445 support level. This bullish formation establishes a critical foundation for potential price recovery. The pattern’s neckline is $0.2596, creating a clear breakout target for traders.
Chart patterns indicate the profit target could reach $0.3753, representing a 132% gain from current levels. The calculation stems from measuring the pattern’s height at 44% and projecting the same distance above the neckline. Support at $0.1445 remains crucial for maintaining bullish momentum.
Bears could invalidate this scenario if DOGE drops below the double-bottom support. Such a breakdown pushes prices toward the psychological $0.10 level. Current consolidation above support suggests buyers are defending key technical levels.
Political Drama Unlikely to Impact Price Action
The ongoing feud between Donald Trump and Elon Musk has escalated recently, with Trump threatening to cut federal subsidies and contracts for Musk’s companies. The dispute centers on Trump’s budget bill, which Musk opposes due to concerns about eliminating electric vehicle tax credits.
Approximately $22 billion in SpaceX contracts could be at risk from the political fallout. Trump has criticized Musk’s stance on the legislation, suggesting the billionaire’s opposition stems from personal financial interests. The president also threatened to reduce government support for Tesla and SpaceX operations.
Market analysts expect minimal impact on Dogecoin from this political theater. The relationship between Trump and Musk deteriorated months ago without significantly affecting DOGE prices. Musk’s appointment to head the Department of Government Efficiency failed to provide sustained price support for the cryptocurrency.
Historical data shows that Dogecoin moves independently from Musk’s political activities. The token’s performance correlates more closely with broader cryptocurrency market trends than individual personalities. Technical factors appear more influential than social media commentary or political developments.
Disclaimer
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