Dogecoin Eyes 25% Boom as Elon Musk Posts DOGE Tweet

Key takeaways:

Dogecoin (DOGE) jumped 2.5% to $0.20 as market attention turned to the latest Elon Musk news. Share Xwhich features the memecoin Shiba Inu mascot. DOGE price rose 29% in response.

The move extended DOGE’s sharp recovery from its recent low of $0.13, its lowest level since April, representing a 55% recovery in just two weeks.

Musk’s tweets famously fueled DOGE’s explosive 2021 rise from mere cents to nearly $0.73.

Now, with improving sentiment and multiple technical indicators flashing bullish signals, the top memecoin appears poised to extend its recovery into the second half of October.

DOGE’s A&E indicates a 25% gain after that

Dogecoin is forming the Adam and Eve Double Bottom pattern, a bullish reversal setup where a sharp “V”-shaped decline (Adam) is followed by a rounded recovery (Eve). This pattern indicates that selling pressure is fading as buyers regain control.

DOGE’s neckline is near $0.216, and a confirmed break above this level could see a move towards $0.260, roughly 25% higher than current prices.

The target is in line with the model’s measured movement forecast and coincides with a major technical confluence area. It also matches the 0.382 Fibonacci retracement level on the DOGE weekly chart, as shown below.

Retracement possibilities are gaining further strength as DOGE rebounds from a support confluence area that includes an uptrend line and the 0.236 Fibonacci line, reinforcing the idea that buyers are defending lower levels, while eyeing $0.26 as an interim upside target.

A short squeeze could help DOGE reach the $0.26 target

Futures data He appears A greater concentration of short liquidation is between $0.215 and $0.27, while long-term liquidation levels remain relatively constant below $0.18.

This imbalance indicates lower downside risk, with fewer leveraged buy trades that can lead to significant selling pressure. Conversely, an uptrend has a thick liquidity wall of short positions waiting to be squeezed.

Related to: DOGE Holders Are Buying the Dips: Is $1.60 by 2026 Realistic?

Therefore, a break above the neckline at $0.216 could unleash a wave of short liquidation, accelerating the move towards $0.26 as bearish traders are forced to buy back on the rise.

This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.