Elon Musk Fuels Fresh DOGE Buzz despite Price Hovering Near Flatline

On Jan 31, 2025 at 12:52 pm UTC by · 3 mins read

Elon Musk’s D.O.G.E.-linked announcement has reignited curiosity among Dogecoin enthusiasts amid the token’s stagnant price movement.

Dogecoin DOGE $0.16 24h volatility: 0.3% Market cap: $23.14 B Vol. 24h: $692.28 M has found itself in the spotlight once again despite showing limited price action. The popular meme coin is trading near the flatline at $0.3281, slipping slightly in the last 24 hours while its trading volume dropped by 35% to $1.27 billion. Market participants are keeping a close eye on the token as Elon Musk recently posted about a government initiative that shares an uncanny acronym with DOGE.

Elon Musk announced ambitious targets for the Department of Government Efficiency (D.O.G.E.), aimed at reducing the US federal deficit from $2 trillion to $1 trillion by 2026. The proposal would involve cutting projected spending by $4 billion daily. While the announcement is not directly related to the meme coin, it has stirred curiosity in the Dogecoin community as Musk’s fondness for the token is well-documented. Earlier this week, Musk even extended an invitation to Dogecoin co-founder Shibetoshi Nakamoto to join the department.

Blockchain enthusiasts quickly interpreted the announcement as a possible bullish signal. Musk’s past endorsements have often sparked price surges, and many DOGE advocates remain hopeful that history will repeat itself.

DOGE Price Analysis

DOGE, which is currently in a consolidation phase, faces key resistance at $0.3300, with its next significant hurdle at $0.3550 should bullish momentum pick up. However, failure to maintain the $0.3150 support level could trigger selling pressure, possibly dragging the price down to $0.3050.

On the daily chart, both the MACD and signal lines are trending downward, indicating persistent bearish momentum. The red line above the blue line further underscores a continued sell signal.

Conversely, the 4-hour chart offers a bullish signal in the short term. The Relative Strength Index (RSI) stands at 46, suggesting market neutrality but with an upward slope hinting at growing bullish momentum. A potential MACD bullish crossover in this timeframe could act as a catalyst for DOGE to breach resistance levels.

Market analyst BlockchainBaller remains bullish despite the ongoing market stagnation. In a recent social media post, the trader projected a price surge beyond $0.48 in the near future, citing DOGE ETFs under SEC review and Musk’s consistent hype as key factors.

Similarly, prominent cryptocurrency investor Luciano recently expressed his optimism on X, stating that “$1 is just a matter of time [for DOGE]. The big chads are betting heavily; there is no reason not to be optimistic on this one”. Notably, the largest memecoin has recorded a 320% surge in the past year.

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