Dogecoin has increased by 5.86% in the last 24 hours, driven by speculation about Elon Musk's political party and its possible support for cryptocurrencies.
Speculation on America Party Support
Dogecoin's price rose by 5.86%, reaching $0.173 on July 7. The increase followed speculation about Elon Musk's newly announced political party, the America Party, and its potential support for cryptocurrencies, including Dogecoin. The Tesla CEO recently confirmed that his party would back Bitcoin, calling the fiat system "hopeless." This has driven traders to speculate whether Dogecoin, often linked to Musk, might also be included in the party's crypto support.
DOGE Community Reaction
Although Musk did not specifically mention Dogecoin's role in the new political party, he retweeted a post by Dogecoin co-founder Shibetoshi Nakamoto, in which the author expressed support for the new America Party. This sparked action in the DOGE community, resulting in increased trading volumes and price activity.
Technical Analysis and Trading Volumes
According to chart analysts, Dogecoin appears to be forming a double-bottom pattern, with key support near the $0.12 mark. This pattern suggests a potential continuation of the current upward trend, with a target price of $0.259 if the neckline resistance breaks. Data from Coinglass revealed a 250% jump in Dogecoin's trading volume within the last 24 hours. Such a spike typically indicates increased trader participation and stronger market confidence in the token's short-term performance.
If Dogecoin successfully breaks the $0.259 resistance level, it could potentially double in price to reach $0.519, aligning with historical reactions to Musk's endorsements.