Crypto: Dogecoin Skyrockets, Elon Musk Reignites Meme Fever.

Dogecoin (DOGE) is experiencing a spectacular resurgence, driving the entire meme crypto sector along with it. This sudden rise, fueled by positive investor sentiment, could signal a major rally if certain key indicators are confirmed.

A tweet from Elon Musk ignites the Dogecoin community

Tesla CEO, Elon Musk, has once again demonstrated his influence on Doge’s price. A simple tweet referring to the “Department of Government Efficiency” (DOGE) was enough to spark a wave of enthusiasm within the Dogecoin community.

Data from Santiment reveals that DOGE has become one of the most discussed tokens in the last 24 hours, illustrating the significant impact of Musk’s statements on crypto investor sentiment.

The community’s reaction was swift. Indeed, a meme inspired by “The Lion King” posted by @cb_doge, a popular influencer in the Dogecoin ecosystem, quickly caught the attention of Musk himself.

This interaction helped to strengthen the positive sentiment around DOGE, propelling the entire meme coin sector to a general increase of 8% within a day.

On-chain data analysis reveals that this progression has led Dogecoin into a significant accumulation zone. Investors acquired more than 60 billion DOGE tokens, potentially establishing a new support level.

Promising technical indicators for DOGE

At the time of writing, Dogecoin is trading around $0.103, showing a daily increase of 6%. The last 24 hours saw $2.45 million worth of positions liquidated, including $2.27 million in short positions.

Technical analysis reveals that DOGE is moving within a descending wedge on the 12-hour chart, suggesting a gradual exhaustion of selling pressure. A break above the resistance at $0.111 could pave the way for an ascent to $0.142, or even $0.175 in the case of a major breakthrough.

Moreover, Dogecoin’s open interest (OI), currently at $480 million, will need to increase to support this bullish momentum. The relative strength index (RSI) at 59 and the entry of the stoch oscillator into the oversold zone offer mixed signals, calling for caution.

In summary, Dogecoin is at a crucial inflection point. If the current momentum is maintained, fueled by investor enthusiasm and favorable technical indicators, DOGE could well confirm its status as the leader of meme coins and initiate a new phase of significant growth.