Dogecoin rose 4% today after Elon Musk endorsed the cryptocurrency following the launch of his new America Party. Market interest in this largest meme coin is notable after trading volume surged over 300% to $1.52 billion. This new interest emerged after Elon Musk confirmed Bitcoin following the launch of the America Party, raising speculation about whether DOGE could be the next coin.
Can Elon Musk's America Party Accept Dogecoin?
After the disagreement between Musk and Donald Trump over the newly passed Big Beautiful bill, Musk founded a new political party that he named the America Party. While attempting to explain how this new party would operate, he hinted that the party would support cryptocurrency assets. Musk responded to a user when they asked if the party would accept Bitcoin, stating that the fiat system is 'Hopeless.'
Another user asked Musk whether Dogecoin would also be part of this new party, but Musk did not answer the question. However, he later reposted a message from DOGE co-founder Shibetoshi Nakamoto supporting the new America Party and the benefits it would bring to American voters.
Earlier today, the billionaire confirmed that his party would accept Bitcoin, and he believes that fiat money is hopeless. His post led to wild speculation that DOGE, given his previous interest, would be the next coin after Bitcoin.
Based on his responses, it is likely that Musk will once again shift his attention to Dogecoin, making it one of the highest-performing meme coins in July.
Will DOGE Increase If Musk Continues to Endorse?
Traditionally, the price of Dogecoin tends to react positively to Musk's endorsements, as such moves usually increase the interest of retail investors looking to make quick profits. If the America Party endorses DOGE, the price could confirm the weekly double bottom pattern, potentially triggering a 2x price surge in a short time.
The support level in this double bottom pattern is $0.12, and looking at how the price of Dogecoin bounced back from this level, it is likely that the buyers have successfully defended this level and the upward momentum may continue.
The first target when this double bottom pattern occurs is at the resistance neckline of $0.259, where the price will face its first obstacle. If it can break this resistance level, the price of DOGE could increase by 100% to a price that is likely to be achieved with this pattern at $0.519.
The AO is aligning with this bullish Dogecoin price prediction as it has turned green in the negative zone, which typically indicates that sellers are not as aggressive as before. At the same time, the CMF indicator is rising, which is a sign that although buying pressure is low, it is gradually strengthening, making it possible for the price of DOGE to rise further.
Data obtained from Coinglass shows that the price of DOGE could rise further due to this altcoin's trading volume increasing by 263% in the past 24 hours to $5 billion. Such a significant increase often indicates that traders are rushing to bet on how the price of Dogecoin will develop in the future.
In summary, Elon Musk's recent initiative to host a party while still supporting the cryptocurrency industry has sparked speculation among some traders about whether he will return to supporting Dogecoin. If this happens, the meme token will confirm the double bottom pattern and double to $0.519.