Elon Musk’s D.O.G.E Post Sparks 6% Surge For Dogecoin

• Dogecoin surged 6% after Elon Musk’s X post about a “Department of Government Efficiency (D.O.G.E).”
• Musk hinted at joining a Trump administration, sparking Dogecoin community excitement.
• Musk’s posts often drive DOGE volatility, despite his commitment to avoid crypto promotion.

Dogecoin (DOGE) has surged nearly 6%, fueled by a recent post from X CEO Elon Musk. The rise follows speculation that the SpaceX executive could have a role in a potential Donald Trump administration.

Musk, a well-known Dogecoin advocate, recently stated that he won’t promote any cryptocurrency unless it’s in a joking context.

Dogecoin Soars 6% on Elon Musk’s Post

Captioned “I am willing to serve,” the posthumously showcased the Department of Government Efficiency (D.O.G.E.), a fictional role Musk suggested in a potential Trump administration.

I am willing to serve pic.twitter.com/BJhGbcA2e0

— Elon Musk (@elonmusk) August 20, 2024

Musk also remarked that the “Department of Government Efficiency” was the “perfect name,” as it closely mirrors Dogecoin’s ticker, DOGE. 

Perfect name https://t.co/qOUblToy7v

— Elon Musk (@elonmusk) August 20, 2024

The news follows comments from Donald Trump, the Republican nominee for the upcoming US elections, who expressed a willingness to consider Musk for a cabinet position. Trump also suggested he might take Musk on in an advisory role if he wins the November elections.

“I have discussed with Donald Trump the idea of a government efficiency commission and I would be willing to be part of that commission,” Musk said recently.

Notably, Elon Musk’s social media posts have a long history of driving Dogecoin’s value, as community members often view them as endorsements of the meme coin. 

Similarly, developments involving Musk’s companies, SpaceX and X (formerly Twitter), have also sparked volatility in what’s often referred to as the “Bitcoin of meme coins.”

In a July appearance on the X Takeover podcast, Musk expressed his fondness for Dogecoin, mentioning his affection for dogs and memes as reasons behind his soft spot for the coin. 

Despite this, the tech magnate reiterated his stance that he won’t endorse any cryptocurrency unless it’s in a joking context.

“I do think there is some merit in Bitcoin, and maybe some other cryptos… I have sort of a soft spot for Dogecoin because I like dogs and memes… I’m not going to be promoting crypto — at most, in a joking way. If you see me pumping crypto, it is not me,” Musk said.

Nevertheless, Musk cannot control the reactions of the DOGE community to his posts, especially given his past enthusiastic endorsements of the meme coin. In January, he revealed that he personally holds Dogecoin, while SpaceX invests in Bitcoin.

However, the influence of Musk’s statements on Dogecoin’s value has lessened over time. Unlike the dramatic surges triggered by his 2021 tweets, recent comments have only led to modest price movements for DOGE.

Dogecoin Price Outlook

Based on the daily chart for the DOGE/USDT pair, Dogecoin becomes an attractive buy only if it breaks and closes above the $0.1200 level. 

However, it faces strong resistance, with the volume profile (orange nodes) indicating that bulls are waiting to engage once the price surpasses this level.

The Relative Strength Index (RSI) shows bullish pressure, but its position below 50 signals weak momentum. Similarly, the Awesome Oscillator (AO) remains in negative territory. Together, these indicators suggest a high probability of a continued bearish trend in the DOGE market.

Conversely, if bullish momentum strengthens and the RSI crosses above 50, Dogecoin’s price could break through resistance levels at the 50, 100, and 200-day Simple Moving Averages (SMA) at $0.1138, $0.1296, and $0.1364, respectively.

With buyers positioned above $0.1200, the resulting buying pressure could propel Dogecoin toward the $0.1600 range, where additional bullish interest is likely to emerge.