Here’s Why The Dogecoin Price Recovered Above $0.1

2 months ago 19

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Dogecoin (DOGE) finally recovered above the psychological price of $0.1, providing a bullish outlook for the foremost meme coin. Dogecoin’s price recovery is thanks to several factors, including the recent bounce from the flagship crypto, Bitcoin (BTC).

Dogecoin Reovers Following Bitcoin’s Rise

Dogecoin recovered above $0.1 following Bitcoin’s rise to as high as $58,000 this week. The meme coin’s price is known to have a strong positive price correlation with the leading crypto. As such, Bitcoin’s rise from below $54,000 over the weekend to $58,000 on September 9 ultimately paved the way for DOGE to recover above this crucial support level.

While it remains to be seen whether Bitcoin’s recent price rally is a relief bounce or a bullish reversal, a further move to the upside for the leading crypto will undoubtedly lead to a sustained upward trend for Dogecoin.

Meanwhile, another reason DOGE’s price has rebounded is the renewed support from the world’s richest, Elon Musk, known to be fond of the meme coin. Musk recently put out an X post in which he alluded to DOGE with his “Department of Government Efficiency” caption. The post also contained an image that highlighted the acronym ‘D.O.G.E.’

In another X post, Musk declared that Doge would be the official mascot for the Department of Government Efficiency, further highlighting the world’s richest man’s support for DOGE. Musk’s cryptic posts about Dogecoin have always impacted the meme coin’s price, and this time was no different as DOGE enjoyed notable rallies following Musk’s posts.

Musk’s renewed public support for Dogecoin follows the court’s ruling that he wasn’t liable in a class action suit that accused him of manipulating DOGE’s price. The judge declared that the allegations against Musk were unfounded and that his comments about Dogecoin were simply “aspirational puffery” and could not have been taken as actual hard data by anyone.

DOGE Has $0.15 In Sight

Following Dogecoin’s recovery above $0.10, the foremost meme coin could reach $0.15 if it sustains this bullish momentum. While highlighting a falling wedge on DOGE’s daily chart, crypto analyst Ali Martinez mentioned that a sustained close above $0.10 could spark a bullish run to this price level for DOGE.

Data from the market intelligence platform IntoTheBlock shows a surge in large transactions, suggesting Dogecoin whales are again accumulating the meme coin. This is significant as this buying pressure could propel DOGE to $0.15. Given its correlation with Bitcoin, Dogecoin could reach this price level if the flagship crypto’s price rallies and breaks above $60,000.

At the time of writing, Dogecoin is trading at around $0.10, down over 2% in the last 24 hours, according to data from CoinMarketCap.