Dogecoin (DOGE) Surges 4% Amid Speculation on Elon Musk’s America Party Potentially Embracing Crypto

Dogecoin (DOGE) has experienced a notable resurgence, recording a 4.5% increase in the last 24 hours, bringing its price to approximately $0.171 as of July 7. The heightened market interest surrounding this prominent meme coin is underscored by a staggering surge in trading volumes, which have skyrocketed by more than 310% to reach about $1.58 billion. This uptick in activity follows Elon Musk’s endorsement of bitcoin following the launch of his new political initiative, the America Party, prompting speculation that Dogecoin may soon receive a similar endorsement. Should this alignment occur, many are left wondering whether DOGE could potentially rally to new all-time highs.

In the wake of a public disagreement between Musk and former President Donald Trump regarding the recently enacted Big Beautiful bill, Musk has taken the bold step of founding a new political entity dubbed the America Party. In his discussions surrounding this new venture, Musk has indicated that the party would adopt a pro-cryptocurrency stance, further igniting interest in the potential for Dogecoin to be included in this vision.

Responding to inquiries from social media users, Musk acknowledged that the America Party would indeed support Bitcoin, describing the current fiat currency system as “hopeless.” This declaration has led to rampant speculation regarding DOGE’s future within the party. Although Musk did not directly answer a question about Dogecoin’s inclusion, he did retweet a message from Shibetoshi Nakamoto, the co-founder of Dogecoin, who expressed enthusiasm for the America Party and its promise to benefit American voters.

Musk’s previous support for Dogecoin has historically driven significant market movements, and many analysts believe that a renewed endorsement could propel DOGE to become one of the most actively traded cryptocurrencies this July. The question now remains: if Musk were to again advocate for Dogecoin, what impact would that have on its price trajectory?

Historically, endorsements by Musk have had a positive influence on Dogecoin’s price, often triggering increased retail interest from traders eager to capitalize on potential short-term gains. Should the America Party formally endorse DOGE, technical indicators suggest that the price may confirm a bullish double-bottom pattern, which could set the stage for a significant rally.

The double-bottom pattern indicates critical support at approximately $0.125. Recent price movements suggest that bullish traders have successfully defended this level, creating a scenario where further upward momentum is plausible. The immediate target for this bullish pattern is the neckline resistance at $0.26, where the price is expected to encounter its first hurdle. If DOGE can break through this resistance level, projections indicate the potential for a price surge of up to 100%, ultimately reaching around $0.53.

Technical analysis supports this bullish sentiment, as evidenced by the Awesome Oscillator (AO) shifting to a positive reading within the previously negative zone. This movement suggests that selling pressure is easing. Concurrently, the Chaikin Money Flow (CMF) indicator is on the rise, indicating that while buying pressure has been relatively subdued, it is gradually gaining strength, which bodes well for future price increases.

Moreover, data from Coinglass reveals that trading volumes for Dogecoin surged by an impressive 275% over the past 24 hours, reaching an astonishing $5.3 billion. Such a remarkable influx of trading activity typically signals that traders are positioning themselves in anticipation of future price movements, further bolstering the case for a potential rally.

Musk’s recent initiatives to establish the America Party, coupled with his vocal support for cryptocurrency, have ignited speculation among traders regarding the possibility of him returning as a prominent advocate for Dogecoin. If this occurs, analysts predict that DOGE will confirm the aforementioned double-bottom pattern and could experience a notable price increase, possibly reaching as high as $0.53.

As the cryptocurrency market continues to evolve, the influence of high-profile figures like Musk cannot be underestimated. His endorsement could serve as a catalyst for Dogecoin’s resurgence, drawing in both seasoned investors and speculative traders alike. With the current momentum and interest surrounding DOGE, the coming days could prove to be pivotal in determining its price trajectory.

The excitement surrounding Dogecoin is palpable, and as the market watches closely for any signs of Musk’s renewed support, traders remain optimistic about the potential for significant gains. Whether or not the America Party will officially embrace Dogecoin remains to be seen, but the speculation alone has already set the stage for a potentially thrilling chapter in the cryptocurrency’s ongoing story.