Dogecoin Stages Epic Comeback with 11% Surge, Adding $2.5B in Market Cap After Elon Musk Latest Remarks

Dogecoin Stages Epic Comeback with 11% Surge, Adding $2.5B in Market Cap After Elon Musk Latest Remarks

Dogecoin has experienced a dramatic comeback today, posting over 11% gain at press time to trade above $0.1745.

This development has increased Dogecoins price substantially at a time when other assets are still in the red.

Dogecoin uptrend

For context, Musk elaborated on the concept of the Department of Government Efficiency during his conversation with Rogan. He framed the idea as a response to the growing federal bureaucracy, which he believes stifles innovation and growth.

In September, Musk revealed that a dog-themed mascot would represent the department, further linking the concept to Dogecoin.

Dogecoin Adds $2.5B in Market Cap

DOGE added about $2.5B in mc on the day

Up 9% to $25.2B mc

And the meme leader looks ready to rip…

— TylerD (@Tyler_Did_It) November 5, 2024

However, on November 4, the coin surged above the upper boundary of that channel, suggesting a possible bullish trend. This breakout saw a 7% price jump, with the analyst forecasting a further 24.14% increase to $0.0379.

The TD Sequential presents a sell signal on the #Dogecoin $DOGE 4-hour chart, anticipating a correction to $0.161 or $0.156!

— Ali (@ali_charts) November 5, 2024

Technical indicators also suggest that Dogecoin may be entering overbought territory, raising concerns about a short-term pullback.

The Bollinger Bands, which measure price movements relative to volatility, showed Dogecoin touching the upper band. This signals that, while the coin is in an uptrend, it could face consolidation or a price pullback soon.

DOGEUSDT 1 day Chart

The Relative Strength Index (RSI) also supports this cautious outlook. The RSI stood at 69.27, approaching the typical overbought threshold of 70.

While this indicates strong momentum, it also suggests that further gains may be limited. If the RSI surpasses 70, traders may anticipate an increased risk of price correction, consistent with overbought conditions seen in other markets.

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