Dogecoin (DOGE) showed strong signs of recovery on June 11, jumping 6.32% to $0.20 before retracing to $0.19, its resistance level. Trading volume also skyrocketed, nearing $1.65 billion and up over 800% from the previous day. The reason? No other than Elon Musk.
The tech titan made a public attempt to reconcile with his former ally and current United States President Donald Trump. It seems that’s enough reason for DOGE, the crypto he has so proclaimed about, to soar. DOGE not only soared, but it also expanded its market capitalization to $29.9 billion. It still gets the lion’s share of the memecoin market, with 46.49%.
Musk’s Remarks Send DOGE Flying
Musk admitted his wrongdoing, claiming he went too far with his derogatory comments on his X account. The feud, caused by a proposed spending bill, had led to an unbelievable level of escalation between the two powerful men. The two exchanged words and exposed a bit too much. However, Musk’s remarks marked a significant update in their rift, which sent the stock and crypto markets tumbling on June 7th. Musk’s reconciliatory remark was a primary catalyst for the rally. His statements always carry weight for DOGE investors, and that reflected on Dogecoin’s promising uptrend.
But DOGE’s price hasn’t been the only thing making a comeback on the back of Musk’s statements. A DOGE ETF approval is also on the horizon. Speculations around this crypto ETF are intensifying, and many experts are even upping the odds of an approval. This isn’t just a fad or publicity stunt – a DOGE ETF could be approved faster than Cardano or even Polkadot.
The institutional interest in DOGE marks a paradigm shift for a coin that’s traditionally considered an internet sensation. Memecoins typically hold no utility or use case, and this has attracted criticism from several experts over the years. However, DOGE is stepping out of that box. The availability of CFTC-regulated futures can finally enable pension funds and asset managers to gain Dogecoin exposure.
Technical Analysis Confirms Brighter Days Ahead for DOGE
DOGE is currently trying to break above the 50-day EMA, which is $0.193. The Relative Strength Index (RSI) is neutral between 48 and 50 points, while the Average Directional Index (ADI) is 21 points. That explains that DOGE is currently on a bullish trend overall.
The Fear & Greed Index currently sits at 72, up from 57 last week. The next resistance level is $0.214, while support is way below at $0.18. Based on our technical analysis, it’s become obvious Dogecoin isn’t playing. There are several indications of a bullish trend, one of which might set DOGE up for a big rally.
Shiba Inu, PEPE, Also Recovers
The memecoin market in general also showed a sharp recovery. In 24 hours, Shiba Inu (SHIB) has grown 2% in its valuation, with an expanded trading volume of $199 million. The current market valuation of the memecoin stands at $7.825 billion.
The technical patterns suggest that SHIB may be in for a bullish run soon. Currently, it has formed a triangle pattern in the longer time frame and retested the support trendline for the second time.
The RSI is neutral at 48.77 points. If Shiba Inu continues to stay above $0.00001340, it could experience a breakout and target the resistance level of $0.0000160. However, a pullback may hit the support level.
PEPE, another top memecoin, also shows signs of a bullish breakout. The meme token has formed a rounded cup on the 3-day chart, but currently consolidates at $0.00001582.
A breakout above this resistance level could push the coin toward $0.00002660. RSI also supports this setup, confirming a possible rally. However, failure to break the resistance level will lead to further consolidation.