Dogecoin Price Poised for 113% Surge Amid Musk-Swift Exchange and Market Uncertainty

Dogecoin Price Poised for 113% Surge Amid Musk-Swift Exchange and Market Uncertainty

Dogecoin has shown a bullish trend recently, even as the broader crypto market struggles to recover. Many investors are now wondering when Bitcoin might resume its rally. This comes after a high-profile social media exchange between Elon Musk and Taylor Swift, which has sparked renewed speculation around market movement.

At the same time, the much-anticipated Trump-Harris debate left the crypto community disappointed, as both figures avoided any mention of cryptocurrency. This contributed to a general market slump, including a drop in Dogecoin’s price. Despite this, investors remain optimistic, with forecasts suggesting DOGE could surge by as much as 113% in the coming days, though there are risks involved.

Elon Musk and Taylor Swift Exchange Fuels Dogecoin Buzz

A recent social media interaction between Elon Musk and Taylor Swift has reignited interest in DOGE. Musk, who has a well-known influence on cryptocurrency trends, responded to Swift’s Instagram post where she endorsed Kamala Harris for U.S. President. Swift’s post, which humorously referred to herself as a “childless cat lady” in a jab at J.D. Vance, quickly went viral.

Musk, a Trump supporter, has previously made references to “DOGE” in discussions about government efficiency, further driving speculation about his influence on Dogecoin’s price. Given Musk’s past social media antics and their impact on the meme coin, many are wondering if this high-profile interaction could result in another surge for Dogecoin.

Currently, Dogecoin has seen a 3.2% decline in the past 24 hours, trading at $0.1004.

Short-Term Correction Before a Potential Breakout

While long-term prospects for Dogecoin remain bullish, a short-term correction might be on the horizon, with the price potentially dropping 6% to $0.092 before resuming its upward trajectory. On the 4-hour chart, Dogecoin recently experienced an aggressive breakout from a falling channel pattern, and such breakouts often need a retest to confirm the move, otherwise, they risk being false signals.

Data from Coinglass further suggests a short-term bearish outlook, with an imbalance between long and short positions. There is a notable number of short positions on the daily timeframe, indicating a general market expectation that the price could dip further.

However, on the weekly timeframe, the sentiment is more positive, with an imbalance of long positions suggesting that many traders expect the price of Dogecoin to rise in the long term. The current chart pattern—a falling wedge—spanning six months is often resolved with a breakout to the upside, which could lead to gains beyond the projected 113% increase.

As Dogecoin moves higher, it is expected to face resistance at $0.115 and $0.138. If these levels are surpassed, DOGE may aim for $0.17 and eventually $0.21, possibly reaching new highs for the year.

On the other hand, if the bearish sentiment prevails, Dogecoin could fall below the key support level of $0.092, with further declines testing the $0.08 and $0.07 levels.