Billionaire Elon Musk, self-proclaimed as the 'Father of DOGE', has publicly hinted at a ceasefire agreement with Donald Trump, attracting market attention. At the same time, the price of Dogecoin (DOGE) rose higher, surpassing the resistance level of $0.2 before slightly decreasing. Consequently, this has sparked market speculation about the potential breakthrough of the leading meme coin.
Father of DOGE suggests reconciliation with Trump, how will Dogecoin's price react?
Elon Musk posted a statement on X (formerly Twitter) to address his previous comments about former U.S. President Donald Trump. In his post, Musk stated:
"I regret some of my posts about President Donald Trump last week. They went too far."
The post on X quickly attracted attention, with many likes and millions of views recorded within the first few hours.
Additionally, Musk's acknowledgment came after a period of online disagreement between the two public figures. Musk's critical posts went viral.
Notably, the timing of the tweet coincides with the moment the cryptocurrency market is increasingly paying attention, especially to the price of Dogecoin. Musk has publicly supported this meme coin for many years, being dubbed the father of DOGE.
It is important to note that Elon Musk led the Department of Government Efficiency (DOGE) under the Trump administration for several months before resigning.
The abbreviation of this agency bears similarities to the abbreviation of the meme coin, thus having such an impact.
Dogecoin volume data shows that accumulation is cooling off
Meanwhile, chain analysis from CryptoQuant indicates that the recent Dogecoin price bottom coincided with a cooling-off period in spot trading volume.
The volume bubble map shows green signs, implying that accumulation activity is taking place at not overly high trading levels.
These conditions are often precursors to price actions when many holders become more vulnerable as the market remains cautious.
In the past, similar cooling-off periods have signaled the beginning of prior bullish trends in Dogecoin's price. During previous cycles, accumulation at such stages has facilitated future price surges.
Although market conditions are not like previous stages, the structure suggests that a base may be developing. This could provide price action with additional support in the coming months.
Dogecoin Price Action
However, despite the recent rise in Dogecoin's price, data shows that retail investor interest is very low.
Another CryptoQuant chart tracking trading frequency among retail accounts shows some red areas, which previously indicated an increase in retail activity. The absence of these indicators implies that individual investors have not yet re-entered the market in large numbers.
Moreover, previous Dogecoin price surges have often been marked by a sudden increase in trading frequency among small investors. Such periods typically align with media-driven enthusiasm and large trading volumes.
However, current conditions suggest that this move may be driven by institutions or long-term holders rather than by speculative activity from retail investors. This situation could continue to evolve if retail demand returns towards the end of the cycle.
Technical chart indicates the bullish cycle of DOGE
Furthermore, chart analysis shared by Trader Tardigrade has outlined a potential new bullish phase in the Dogecoin price cycle. The monthly DOGE/USD chart shows a recurring consolidation pattern followed by vertical price expansion.
Additionally, similar structures have emerged before two major price surges. Each of those cycles began with symmetrical triangles and breakouts, followed by rapid upward moves.
Based on this pattern, the price of Dogecoin may currently be in a phase referred to as 'Cycle 3'. If the price continues in this direction, the long-term target could reach $10.
Although speculative, the consistency of patterns in the past lends reliability to forecasts. The green indicators currently seen on the chart resemble indicators prior to previous breakouts, aligning with broad market support for a new growth phase.
At the time of the press reporting, Dogecoin was trading at $0.2008, up 1.97% in 24 hours. It has recovered from a low of $0.195 and hit the daily resistance level near $0.202 before slightly decreasing.