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Dogecoin Price Prediction as DOGE Jumps 5% in Minutes After Musk Tweet – Is the Elon Effect Weakening?

Joel Frank
Last updated: | 2 min read
DOGE Chart / Source: TradingView

Dogecoin (DOGE) is trading around 3.5% higher in the past 24 hours, outperforming the likes of bitcoin (BTC) and ether (ETH), both of which are trading broadly flat.

The crypto market’s most valuable meme cryptocurrency, at least as measured by market capitalization, was last trading just above $0.07, having found support in the last few days at its 21 and 50-Day Moving Averages (DMAs) at $0.066 and $0.067, though having also found resistance at its 100DMA in the $0.072 area.

DOGE got an intra-day boost as Tesla, SpaceX CEO and Twitter owner Elon Musk tweeted a meme and said “doges ftw (for the win)”.

In a matter of minutes, DOGE rallied as much as 5%, only to quickly give much of these gains back.

Elon Musk has been a vocal proponent of Dogecoin in the last few years, saying he owns the coin, saying it could be a feasible form of money and hinting that he could integrate DOGE into a future Twitter payments system.

That’s marks the second time that Musk has teased the DOGE market with Twitter references in just a few days.

On the 17th of July, Musk responded to a tweet asking if people prefer dogs or cats with the word “doges”.

This also triggered a short-term pop for the DOGE price.

Is the Elon Effect Weakening?

Clearly, traders still have their bots programmed to automatically start buying when Musk tweets any reference to Dogecoin.

But Musk’s most recent Doge references have failed to trigger any follow-through upside for Dogecoin.

The cryptocurrency is barely up on the week and is still over 5% below last week’s $0.075 highs.

Unless Musk does something to meaningful revive speculation that Dogecoin might be integrated into a future Twitter payments system, Dogecoin’s Musk-related tweet pumps will likely remain short-lived.

Price Prediction – Where Next for Dogecoin (DOGE)?

Dogecoin is moving higher within the confines of a short-term bullish trend channel.

But, if the cryptocurrency keeps crawling higher, it will soon hit key long-term resistance in the upper $0.07s in the form of a downtrend from the 2021 all-time highs and the 200DMA.

Dogecoin’s longer-term price prediction thus remains bearish, with a retest of yearly lows likely unless it can break above this key aforementioned resistance zone.

Dogecoin (DOGE) Alternatives to Consider

Investors should always be on the lookout to diversify their crypto holdings.

One high-risk-high-reward investment strategy that some investors might want to consider is getting involved in crypto presales.

This is where investors buy the tokens of up-start crypto projects to help fund their development.

These tokens are nearly always sold very cheap and there is a long history of presales delivering huge exponential gains to early investors.

Many of these projects have fantastic teams behind them and a great vision to deliver a revolutionary crypto application/platform.

If an investor can identify such projects, the risk/reward of their presale investment is very good.

The team at Cryptonews spends a lot of time combing through presale projects to help investors out.

Here is a list of 15 of what the project deems as the best crypto presales of 2023.

See the 15 Cryptocurrencies

Disclaimer: This section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.