- Dogecoin gained 4% to $0.17, and trading volume jumped 300% after Elon Musk’s America Party endorsed Bitcoin.
- Technical analysis shows a double-bottom pattern that could push DOGE to $0.519 if it breaks resistance at $0.259.
- Musk has not directly mentioned Dogecoin support but retweeted posts from DOGE’s co-founder about his new political party.
Dogecoin has recorded a 4% gain in the last 24 hours to trade at $0.17 today, July 7. The meme coin’s trading volume has surged by more than 300% to $1.52 billion, indicating heightened market interest among retail investors and institutional traders.
The price rally coincides with Elon Musk’s launch of the America Party, a new political initiative already endorsed by Bitcoin. Market analysts suggest this development could signal potential support for Dogecoin, given Musk’s historical advocacy for the cryptocurrency.
America Party’s Crypto Stance Creates Market Speculation
Following disagreements with President Donald Trump regarding recent legislation, Musk has established the America Party as an alternative political platform. The billionaire entrepreneur has confirmed that his party will embrace Bitcoin, describing the fiat currency system as “hopeless” in response to user inquiries on social media.
While Musk has not directly addressed questions about Dogecoin’s role in the America Party, he has retweeted posts from DOGE co-founder Shibetoshi Nakamoto endorsing the new political initiative. This indirect acknowledgment has fueled speculation among traders about potential future endorsements.
The cryptocurrency market has responded positively to Musk’s political venture, with Bitcoin approaching new highs and alternative cryptocurrencies experiencing increased trading activity. Dogecoin’s price action suggests investors are positioning for potential announcements regarding the meme coin’s integration into the America Party’s platform.
Technical Analysis Points to Potential Rally
Market analysts have identified a double-bottom pattern in Dogecoin’s weekly chart, with support established at $0.12. The technical formation suggests a potential for significant upward movement if certain resistance levels are breached.
The pattern’s neckline resistance sits at $0.259, representing the first major obstacle to price advancement. A successful breakout above this level could trigger a rally toward $0.519, representing approximately 100% gains from current levels.
Technical indicators support this bullish outlook. The Awesome Oscillator has turned green within the negative region, indicating weakening selling pressure. The Chaikin Money Flow indicator shows gradually increasing buying pressure, suggesting accumulation among long-term investors.
Trading data from Coinglass reveals a 263% increase in Dogecoin’s trading volume to $5 billion within the past 24 hours. This surge in trading activity typically indicates heightened investor interest and potential for continued price volatility.
Market Outlook and Investment Considerations
Historical data shows Dogecoin’s price has consistently reacted positively to Musk’s endorsements, often generating significant short-term gains. The meme coin’s performance has been closely tied to the entrepreneur’s public statements and social media activity.
The current market environment presents both opportunities and risks for Dogecoin investors. While technical patterns suggest a potential for substantial gains, the cryptocurrency’s dependence on external endorsements creates inherent volatility.
Traders closely monitor Musk’s social media activity and America Party developments for additional signals regarding Dogecoin’s future role. The convergence of political developments and cryptocurrency adoption could create unique market dynamics in the coming weeks.
Disclaimer
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