Elon Musk DOGE Tweet Sends Dogecoin Price Soaring as Holders Hope for $0.10 Sustainability

Elon Musk has once again shaken the Dogecoin (DOGE) market with a cryptic tweet, sending the meme coin’s price soaring. The billionaire CEO of Tesla and owner of X (formerly Twitter) posted a simple “D.O.G.E” message, sparking a rapid rise in DOGE’s value. This time, Dogecoin surged by 6%, touching $0.095 before slightly retracing. The big question now on investors’ minds is: can DOGE maintain this upward momentum?

Historically, an Elon Musk DOGE tweet has consistently resulted in sharp but often short-lived price spikes. While this latest move has buoyed hopes of further gains, sustainability remains uncertain, especially with the broader cryptocurrency market experiencing volatility.

Elon Musk DOGE Tweet: A Catalyst for DOGE Yet Again

The recent Elon Musk DOGE tweet on 7 September followed the CEO’s typical pattern of cryptic messages about the meme coin. Musk tweeted an AI-generated image featuring him alongside the letters “D.O.G.E.,” which he attributed to the Department of Government Efficiency—a lighthearted jab that instantly caught the attention of the crypto world.

This isn’t the first time Musk’s words have ignited a Dogecoin rally. In August, he made a similar tweet, resulting in a 6% price increase. According to blockchain analytics firm Santiment, the most recent Elon Musk DOGE tweet has again pushed Dogecoin’s social dominance higher. This metric, which measures the amount of social media chatter around a specific asset, shows heightened discussion whenever Musk mentions DOGE.

“Elon Musk’s ability to influence Dogecoin prices is remarkable. His tweets alone often cause social spikes that translate into real trading volume,” said Mati Greenspan, founder of Quantum Economics. “However, the sustainability of these price hikes is another story.”

Social Dominance on the Rise

Following the Elon Musk DOGE tweet, Dogecoin saw a sharp rise in social dominance. This term, used to describe the amount of social media discussion focused on a specific cryptocurrency, has historically been a precursor to significant price movements. According to Santiment data, DOGE social dominance surged by over 25% after Musk’s latest tweet.

This social buzz often translates into buying activity. Data from IntoTheBlock reveals that the buy-side liquidity for Dogecoin has outpaced the sell-side, at least for now. Over 500 million DOGE tokens, valued at over $50 million, have been placed in buy orders across major exchanges. This suggests that buyers are preparing for a potential price rally beyond $0.095.

“Dogecoin’s on-chain activity has been lively, with strong buying support evident at the $0.095 level. If these buy orders continue to flood the market, we could see DOGE test the $0.10 mark,” explained analyst Ali Martinez from IntoTheBlock.

Can DOGE Reach $0.10 Following Elon Musk DOGE Tweet?

Dogecoin’s chart paints a mixed picture. According to TradingView data, DOGE’s price has fluctuated between $0.090 and $0.095 following the Elon Musk DOGE tweet, with the Moving Average Convergence Divergence (MACD) indicator signalling potential bullish momentum. The MACD histogram shows that the coin’s price could be poised for further growth if this trend continues.

“If the MACD holds above the signal line, we might see Dogecoin hit $0.10 in the near term,” said Katie Stockton, a cryptocurrency technical analyst at Fairlead Strategies. “However, any significant selling pressure could send DOGE back down to $0.088.”

A Warning for Investors?

While Musk’s tweets can drive short-term gains, Dogecoin’s longer-term outlook is less predictable. Critics argue that relying on a billionaire’s social media activity for price movements adds an element of uncertainty to Dogecoin’s valuation.

“Elon Musk’s tweets are great for driving short-term price action, but they’re not a sustainable strategy for long-term growth,” said crypto strategist Alex Krüger. “DOGE investors need to be cautious. Relying on a single individual’s influence to drive price movements could leave the coin vulnerable to sharp corrections.”

The Elon Musk DOGE tweet certainly provided a temporary boost to Dogecoin, but it raises a broader question: how much longer can Musk’s tweets continue to influence the market? As the cryptocurrency market matures, there’s an expectation that assets like DOGE will need to rely on fundamentals, rather than social media buzz, for sustained growth.

Looking ahead, the trajectory of Dogecoin will likely depend on several factors, including broader market conditions and investor sentiment. While the Elon Musk DOGE tweet has reignited interest in the meme coin, the ongoing volatility in the crypto market means that predicting DOGE’s next move remains tricky.

If the buy orders continue to outweigh sell-side pressure, Dogecoin may climb towards the $0.10 mark. However, market volatility could quickly wipe out gains, especially if other external factors, such as regulatory news or broader crypto market corrections, come into play.

For now, all eyes remain on whether this latest Elon Musk DOGE tweet will have lasting effects on Dogecoin’s price. Will the coin rise to new heights, or will it fall back into familiar patterns of brief surges followed by corrections?