Dogecoin (DOGE), the market's main meme cryptocurrency, has unleashed a bullish rally in the last week and the catalyst has been billionaire Elon Musk. The relationship between the entrepreneur and the crypto asset continues to be a phenomenon that defies any financial logic, demonstrating that, when Musk speaks, dogecoin responds. In the last seven days, dogecoin has seen a 30% increasegoing from $0.11 to $0.14, consolidating itself as the eighth largest cryptocurrency by market capitalization, as seen in the TradingView chart.
DOGE price. Source: TradingView. This increase is still far from the explosive boom of three years ago, when the crypto asset reached its all-time high close to $0.70. However, this recent rise does not seem to be a coincidence, but was triggered after a peculiar comment by Musk during a political event. On October 17, at a Donald Trump presidential campaign rally in Pennsylvania, an attendee asked Musk if he would lead the hypothetical «Department of Government Efficiency» (DOGE), an idea that seemed like a joke due to its acronyms, which coincide. with the name of the cryptocurrency meme. Without hesitation, the founder of Tesla also responded with a resounding «Yes, Doge», generating a positive effect on the price of the cryptocurrency.
The businessman became an ally of Trump
Last September, Republican candidate Trump mentioned that Musk would lead a team tasked with conducting a full audit of the government federal government and propose reforms, which only further fueled the furor. Some internet users took the suggestion with humor, since the initials of the supposed department form the word «doge.» But the impact did not end there. Musk also reacted on X (formerly Twitter) to a post that criticized politicians and bureaucrats as the biggest obstacles to progress. The criticism arose after California's decision to prevent SpaceX, another of Musk's companies, from launching more rockets from the state. This response generated even more interactions and comments, strengthening the perception that Musk continues to push not only his companies, but also cryptocurrencies like dogecoin.
Musk's link with DOGE
The story between Elon Musk and dogecoin is not new. It began in 2019 as an inside joke in the cryptocurrency community, where a vote was organized to elect the “CEO” who would take DOGE “to the moon.” Musk was one of the candidates and won with an overwhelming majority. Since then, what started as a joke has become a financial phenomenon, where Musk's name has repeatedly benefited the price of DOGE, as reported by BitcoinDynamic.
DOGE maintains a bullish outlook
According to an analysis by the specialist known as Rekt Capital, DOGE “has successfully broken its macro downtrend” (in blue) and has retested it as support in recent months (purple circle), as seen in the following graphic.
DOGE price technical analysis. Source: Rekt Capital. “As a result, it has been confirmed that the macro downtrend has ended and DOGE is slowly starting its new macro uptrend,” notes the analyst. The cryptocurrency «has tested its support in recent months» and has started a new upward trend, he says. The key now, is that the asset needs to reach and maintain a previous low price of $0.12 (in black) as new support. If it succeeds, it could reach levels close to $0.16 or even $0.20, he explains. However, he warns that, If it fails to stay above this support, DOGE could pull back againas he has done on other recent occasions. For that, it needs to reach and maintain a previous low price of $0.12 (in black) as new support, explains Rekt Capital.