Key Insights:
- Elon Musk’s speculated exit from D.O.G.E. sparks uncertainty but doesn’t signal a long-term bearish outlook for Dogecoin.
- Dogecoin shows bullish potential, forming a ‘falling wedge breakout’ pattern signaling an uptrend.
- Dogecoin price remains resilient, trading above $0.16 with a 6% weekly increase.
Dogecoin (DOGE) price held steady above $0.16 despite rumors that Elon Musk might resign from his role at the Department of Government Efficiency (D.O.G.E.). Musk’s potential departure has reignited fears that the meme coin’s momentum may falter without his backing. But does it really signal trouble for DOGE?
Elon Musk’s Speculated Exit from D.O.G.E.
Elon Musk’s leadership at D.O.G.E. has bolstered Dogecoin’s visibility and perceived legitimacy. The Tesla CEO, currently heading the U.S. Department of Government Efficiency, has consistently influenced sentiment around Dogecoin through both public endorsements and policy-related moves.
However, the Washington Post reported on Apr. 21 that Musk hinted at a potential resignation. This triggered speculation about how DOGE would respond without its most prominent supporter. Given Musk’s outsized influence on crypto, short-term volatility remains a risk.
That said, analysts argue that Dogecoin’s performance does not hinge solely on Musk. While his endorsements have historically driven surges, the coin’s recent price action suggests it is finding strength beyond celebrity backing.
Dogecoin Price Shows Bullish Potential
Despite concerns over Musk’s possible exit from D.O.G.E., Dogecoin’s technical chart patterns suggest a bullish outlook. Crypto analyst, ZAYK Charts pointed out that the crypto is in the process of developing a falling wedge breakout pattern on the daily chart, a bearish-to-bullish reversal pattern. This means that Doge price could begin its rally soon regardless of the existing speculations of the Elon Musk’s market involvement attempts.
Notably, the falling wedge pattern occurs where prices are enclosed in two declining gradually converging lines signaling that the downward pressure is weakening. A breakout from this pattern is often accompanied by intense movement above the trendline.
Hence, the market analysts expect that the price will surge. Thus, despite short-term damage due to Musk’s resignation rumour, technical analysis indicate the potential for further DOGE rally in the next weeks.
Dogecoin Price Prediction and Technical Analysis
As of the latest data, Doge price is trading at around $0.1689, showing an intraday increase of over 5%. The weekly performance of the top meme coin has also shown an upward trend rising 6%. These numbers indicate that irrespective of the rumors over Musk’s exit, Dogecoin has been able to hold above the $0.16 level.
On the technical indicators, the Dogecoin price chart has revealed the meme coin is approaching support just above the lower Bollinger Band set at $0.15823. According to the 1-day DOGE chart, the meme coin price is flattening between the upper and the lower bands, meaning that the volatility is low.
Notably, the rising trend line suggests that a price breakout above $0.17193 could signal continued upward momentum. However, a drop below the lower band may indicate a bearish trend, potentially pushing the price down to the $0.14452 support level.
Meanwhile, the Bull Bear Power (BBP) histogram recently turned positive, crossing above the zero line. This indicates increasing buyer momentum, though strength remains modest. Analysts say a further BBP rise would confirm bullish pressure, while a dip back below zero may warn of fading demand.
Disclaimer
This article is for informational purposes only. Crypto investment involves inherent risks due to the volatility in price. Readers should conduct their research before making any investment decision. Also, you can consult a crypto expert before investing in cryptocurrencies.
