DOGE Soars to an 11-Week High As Elon Musk Resumes Public Dogecoin Interactions

TL;DR

Dogecoin saw a notable price increase on a 24-hour scale, possibly due to a recent interaction by Elon Musk during a public event.
Despite optimism, DOGE’s RSI suggests it might be overbought and due for a pullback.

DOGE on the Run

Dogecoin (DOGE) is the best-performing top 20 cryptocurrency today (October 18), witnessing a 9% price increase and surpassing $0.13. The last time the valuation was trading that high was at the end of July.

The rally could be attributed to Elon Musk’s comments during his recent public speech in Pennsylvania. Tesla’s CEO was asked if he would lead a new potential division (called Department of Government Efficiency) in an eventual Donald Trump administration. He simply answered, “Yeah, DOGE,” receiving applause from the crowd. 

This is not the first time the leading meme coin has headed north following interaction from one of the wealthiest people on the planet. In March this year, Musk said that Tesla may allow DOGE payments “at some point.” This resulted in a double-digit rally for the token’s price. 

Two months later, the EV giant officially integrated DOGE as a payment option on its website. The move fueled another substantial (yet brief) spike for the asset.

Musk has been openly supportive of Dogecoin over the past few years, praising its merits multiple times. At one point, he even referred to himself as the “DOGEFATHER.”

Is DOGE Poised for Further Gains?

The latest resurgence of the meme coin caught the eye of numerous analysts. X user Dylan, for instance, said a massive revival of the other altcoins could follow DOGE’s pump.

$DOGE has finally started to move

Remember when DOGE pumps, Altseason starts pic.twitter.com/NRqFlx2cXE

— Dylan (@DylanTillEth) October 17, 2024

Earlier this week, Ali Martinez also chipped in, outlining a rather ridiculous prediction. He presented a chart showing that DOGE could explode to an all-time high of $10 in the following months.

It is important to note that this would require its market cap to skyrocket to approximately $1.4 trillion. Currently, only Bitcoin (BTC) is close to that target, while the entire capitalization of the cryptocurrency sector is hovering around $2.44 trillion (per CoinGecko’s data).

Despite the bullish mode as of late, one metric suggests DOGE could head south soon. This is the Relative Strength Index (RSI), whose ratio is currently above the critical level of 70. Such readings typically indicate that DOGE is in overbought territory and might be due for a pullback.