Key Points
- Elon Musk’s tweet boosts Dogecoin’s price by over 3%.
- DOGE shows potential to reclaim the $0.11 mark after recent losses.
- Positive market sentiment surrounding Dogecoin grows with increased social volume.
- Analysts suggest DOGE needs to surpass $0.10 for sustained bullish momentum.
Elon Musk, known for influencing the cryptocurrency market, has once again impacted Dogecoin’s price. On September 8, 2024, Musk posted a tweet mentioning the “Department of Government Efficiency,” humorously abbreviated as D.O.G.E.
The tweet generated excitement among Dogecoin supporters, leading to a more than 3% price surge within 24 hours. This latest bump follows a week of bearish trends, which saw DOGE’s value drop by 4%.
Elon Musk tweets, Dogecoin spikes! Is $0.11 next for the memecoin?https://t.co/533jZOic87
— John Morgan (@johnmorganFL) September 8, 2024
When writing, Dogecoin was trading at $0.09597, with a market capitalization surpassing $14 billion, solidifying its position as the 8th largest cryptocurrency.
This rise may only be the beginning, as experts believe Dogecoin could soon reclaim $0.11, a critical price level needed to continue its recovery from previous losses.
Can Dogecoin Reclaim $0.11?
The renewed optimism around Dogecoin is driven by Musk’s consistent support and the resulting positive sentiment across the market.
As expected, Musk’s tweet led to an immediate increase in Dogecoin’s social volume, with Santiment data showing a surge in positive market sentiment.
In the world of meme coins, market sentiment plays a pivotal role. Dogecoin’s weighted sentiment has moved into a positive zone, indicating growing confidence in its future performance. However, while the bulls appear to be taking charge, some analysts advise caution.
A prominent crypto analyst, Crypto Tony, pointed out that Dogecoin must surpass $0.11 to fully recover from recent downtrends.
The meme coin’s current performance is encouraging, but reaching $0.11 is seen as the key to sustaining its upward momentum.
Looking at on-chain data, Dogecoin’s MVRV ratio, which measures profitability, has improved, reflecting bullish market activity.
Additionally, the percentage of Dogecoin’s supply in profit has increased, further bolstering the case for a continued rally.
Possible Roadblocks for Dogecoin Ahead
Despite the positive signs, there are some concerning indicators. The Network Value to Transactions (NVT) ratio for Dogecoin has risen, suggesting that the asset may be overvalued at its current price. Historically, an increasing NVT ratio hints at a potential price correction.
While Dogecoin’s Fear and Greed Index is currently neutral, meaning market direction remains uncertain, experts believe that if DOGE crosses the $0.10 threshold, its liquidity will sharply rise, triggering short-term price corrections. Should the bears regain control, DOGE could potentially fall to $0.088.
