Dogecoin gains 5.86% as speculation grows over its potential endorsement by Elon Musk’s new political initiative, the America Party.
The double-bottom pattern forming on Dogecoin’s chart may lead to a 100% price surge if key resistance levels are broken.
DOGE’s trading volume surged by 250% in 24 hours, reflecting heightened interest from retail traders driven by Musk's crypto statements.
Dogecoin gained 5.86% over the last 24 hours to trade at $0.173 on July 7. The rise followed speculation surrounding Elon Musk’s newly announced political party, the America Party, and its potential support for cryptocurrencies, including Dogecoin.
The Tesla CEO recently confirmed that his party would back Bitcoin, calling the fiat system “hopeless.” This comment has driven traders to speculate whether Dogecoin, a meme coin often linked to Musk, might also be included in the party's crypto stance.
DOGE Community Reacts to Retweet
Although Musk never specifically spoke on the role of Dogecoin in the new political party, he nevertheless posted a tweet by Dogecoin co-founder Shibetoshi Nakamoto in which the author endorsed the new American Party. This sparked action in the DOGE community, which resulted in an elevation of trading volumes and price activity.
According to chart analysts, Dogecoin appears to be forming a double-bottom pattern, with key support near the $0.12 mark. The pattern suggests a potential continuation of the current upward trend, with a target price of $0.259 if the neckline resistance breaks.
Momentum Indicators Signal Strength
The Awesome Oscillator has turned green, showing a reduction in selling pressure. Additionally, the Chaikin Money Flow indicator has moved higher, indicating growing buying momentum. These indicators support the outlook of further upward movement.
Data from Coinglass revealed a 250% jump in Dogecoin’s trading volume within the last 24 hours. Such a spike generally suggests increased trader participation and stronger market confidence in the token’s short-term performance.
If Dogecoin successfully breaks the $0.259 resistance level, it could potentially double in price to reach $0.519. This projection aligns with historical reactions to Musk's endorsements and could make Dogecoin one of July’s top performers.
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