DOGE Reaches 11-Week High After Elon Musk’s Latest Comments

TL;DR

• Dogecoin experienced a significant price surge over the last 24 hours, likely influenced by Elon Musk’s recent involvement at a public event.
• Despite the positive sentiment, DOGE’s RSI indicates it may be overbought and could face a correction.

DOGE on the Move

Dogecoin (DOGE) is the top-performing cryptocurrency within the top 20 today (October 18), registering a 9% price uptick and crossing $0.13. This marks the highest valuation since late July.

The price surge could be linked to comments made by Elon Musk during a recent public address in Pennsylvania. Tesla’s CEO was queried about potentially spearheading a new division (dubbed the Department of Government Efficiency) in a future Donald Trump administration, to which he simply replied, “Yeah, DOGE,” resulting in audience applause. 

This isn’t the first time the prominent meme coin has surged following remarks from one of the world’s richest individuals. Back in March, Musk mentioned that Tesla might enable DOGE payments “at some point,” which led to a double-digit increase in the token’s price. 

Two months following that, the automaker officially added DOGE as a payment option on its website, resulting in another significant (if brief) rally for the asset.

Musk has consistently supported Dogecoin over the years, frequently praising its advantages. At one stage, he even called himself the “DOGEFATHER.”

Is DOGE Ready for More Gains?

The recent uptrend of the meme coin has attracted the attention of many analysts. For instance, X user Dylan noted that a significant revival of other altcoins could follow DOGE’s surge.

$DOGE has finally begun to rise

Remember when DOGE pumps, Altseason kicks off pic.twitter.com/NRqFlx2cXE

— Dylan (@DylanTillEth) October 17, 2024

Earlier this week, Ali Martinez added his thoughts, making an audacious forecast. He shared a chart indicating that DOGE could soar to an all-time high of $10 within the upcoming months.

However, it’s essential to recognize that this would require its market cap to balloon to around $1.4 trillion. At present, only Bitcoin (BTC) is in a position close to that figure, while the total market capitalization of the cryptocurrency domain hovers around $2.44 trillion (as per CoinGecko’s data).

Despite the recent bullish outlook, one indicator suggests that DOGE may drop soon. This is seen in the Relative Strength Index (RSI), which is currently above the crucial threshold of 70. Such readings typically signal that DOGE is overbought and could be set for a reversal.