Bitrabo Editorial
Dogecoin (DOGE) has successfully climbed back above the key threshold of $0.1, presenting a promising outlook for this popular meme cryptocurrency. The recovery in Dogecoin’s price can be attributed to various factors, particularly the recent surge in Bitcoin (BTC) prices.
Dogecoin’s Recovery Linked to Bitcoin’s Surge
This week, Dogecoin managed to rise above the $0.1 mark, coinciding with Bitcoin’s price hitting a peak of $58,000. Historically, DOGE has shown a strong correlation with Bitcoin, which means that Bitcoin’s increase from below $54,000 to $58,000 on September 9 significantly affected DOGE’s performance, allowing it to regain this vital support level.
It remains uncertain whether this recent upswing in Bitcoin’s value is a temporary relief or signals a more lasting bullish trend. However, should Bitcoin continue to gain momentum, it is likely that Dogecoin will also follow suit.
In addition to Bitcoin’s positive impact, Dogecoin’s price has benefitted from renewed backing by Elon Musk, the wealthiest individual globally, who has a known affinity for the coin. Musk recently shared a post on X (formerly Twitter) referencing DOGE alongside his concept of a “Department of Government Efficiency,” accompanied by a visual emphasizing the acronym ‘D.O.G.E.’
Furthermore, Musk proclaimed that Dogecoin would serve as the official mascot for the Department of Government Efficiency, reinforcing his support for the cryptocurrency. His enigmatic posts typically sway the price of DOGE, leading to significant increases following his mentions.
This resurgence of Musk’s endorsement for Dogecoin comes after a legal decision found him not liable in a class action lawsuit claiming he manipulated DOGE’s price. The court ruled that the charges were baseless and deemed Musk’s comments as mere “aspirational puffery,” not intended to be seen as factual data.
Potential Upside for DOGE at $0.15
With Dogecoin’s recovery past the $0.1 level, experts suggest it could aim for $0.15 if this upward trend continues. Analyst Ali Martinez pointed out a falling wedge pattern on DOGE’s daily chart, indicating that a stable close above $0.10 could spark a rally to this price point.
Market data from IntoTheBlock reveals an increase in significant transactions, implying that major investors are once again accumulating Dogecoin. This activity is crucial as it can drive DOGE toward $0.15. Given the close relationship with Bitcoin, a further rally in Bitcoin, particularly above $60,000, could lead to a similar rise in Dogecoin’s price.
As of now, Dogecoin is trading around $0.10, reflecting a decrease of over 2% in the past 24 hours, according to CoinMarketCap statistics.