Dogecoin Price Analysis: How Elon Musk Literally Pumped Dogecoin to the 'Moon' Soaring to $0.3
- Elon Musk's tweet bolsters Dogecoin to new all-time highs of $0.3.
- DOGE bulls battle to secure formidable support in a bid to avert dumping.
- A significant uptick in social volume is a bearish signal that could see Dogecoin extend the correction.
Dogecoin has continued to gain legitimacy despite starting as a less known meme coin. The progress the coin has made over the last few months can be attributed to the attention received from the founder of the world's largest manufacturer of electric vehicles, Elon Musk. In April alone, DOGE's value has gone up 368% and made it to the market's top ten largest cryptocurrencies.
Elon Musk Tweet Bolstered Dogecoin 150%
Elon Musk, the founder of Tesla, has an unquenched thirst for Dogecoin. In the first week of April, Musk told his massive followers on Twitter that he would put a literal Dogecoin on the moon. DOGE rallied from the support at $0.06, hitting highs above $0.08 before extending the up leg past $0.1.
In the wake of the Coinbase stock listing on Nasdaq, which had a positive impact on most crypto assets, Musk took to Twitter with a meme of a dog (DOGE) barking at the moon. As expected, the community reacted, leading to a burst in social media-related mentions.
Dogecoin was catapulted to the 'moon,' where it hit new record highs of $0.3 amid skyrocketing investor sentiment. At the time of writing, Dogecoin dodders at $0.24 following a record high retreat.
The primary goal is to find higher and formidable support, ensuring that the progress made is not lost. Moreover, robust support will allow bulls to focus on achieving higher highs above $0.3.
DOGE/USD Four-Hour Chart
Dogecoin's prevailing uptrend has been validated by the Moving Average Convergence Divergence (MACD) indicator. Although the correction from $0.3 is apparent, the MACD line (blue) expands the signal line gap. However, it is essential to realize that this situation may change if support is not established.
Looking at the Other Side of the Picture
As mentioned, Elon Musk's tweet triggered a lot of buzz around Dogecoin on Twitter. The social volume related to DOGE shot up massively, leading to an uptick in price, as observed on the chart below by IntoTheBlock.
Dogecoin Social Volume
It is worth mentioning that a spike in social volume is not a bullish signal. While the preceding events support a positive sentiment that boosts the price, the buzz quickly flips bearish as investors dispose of their bags while cashing out for profit. In line with that, Dogecoin may retreat appreciably before the uptrend's resumption.