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Elon Musk’s Cryptic Tweet Sparks Dogecoin Frenzy

The DOGE That Barked the Loudest

Dogecoin began in 2013 as a parody of the crypto boom — created by software engineers Billy Markus and Jackson Palmer, who wanted to poke fun at the absurdity of it all. They slapped the famous Shiba Inu “Doge” meme on a coin and let the internet take over. Somehow, it worked. The joke became a $25 billion joke at its 2021 peak.

And then came Elon Musk.

Back in 2019, Musk casually tweeted: “Dogecoin might be my fav cryptocurrency. It’s pretty cool.” That throwaway line would become the ignition point for one of the wildest speculative rides in crypto history. Over the next two years, his tweets, memes, and offhand remarks sent DOGE skyrocketing — all the way to $0.73 in 2021, its all-time high.

Musk drops another Shiba Inu-themed post on X, and the market reacts like it’s 2021 all over again, source: X

The Technicals Say ‘Maybe’

Technically speaking, Dogecoin’s chart isn’t just froth and memes. Analysts are spotting what’s known as an Adam & Eve double-bottom pattern — a bullish reversal setup that typically follows a sharp “V”-shaped drop (Adam) and a slower, rounded recovery (Eve).

Here’s what the numbers suggest:

• The neckline for this pattern sits around $0.216

• A breakout above that level could push DOGE to roughly $0.29

• That upside target also aligns with the 0.382 Fibonacci retracement level on DOGE’s weekly chart — a favorite signal for technical traders looking for medium-term reversals.

Futures data shows something else interesting: there’s a cluster of short positions waiting to be liquidated between $0.215 – $0.27. If DOGE climbs through that zone, short sellers may be forced to buy back into the market — the infamous short squeeze. When that happens, the move can go vertical fast.

Dogecoin bounced off the channel support and looks set to climb. Eyes on $0.29 first, then $0.45 and $0.86, source: X

The Musk Effect — Still Real, Still Ridiculous

No one can move a meme coin like Elon Musk. When he tweets about DOGE, the internet listens, and traders jump.

But this dynamic cuts both ways. Musk’s influence is undeniable — yet it’s also unpredictable. One playful post can spark a rally, and a week of silence can erase it. Dogecoin’s market cap isn’t built on network adoption or transaction volume; it’s built on attention and attention is fickle.

The Risks Lurking Behind the Hype

Let’s not sugar-coat it: DOGE is pure speculative energy. The fundamentals are thin. There’s no hard cap on supply. Utility is minimal. Development is sporadic. Compared to Bitcoin or Ethereum, Dogecoin is a nostalgia project riding a meme-powered engine. Can Doge go to a dollar?

Here’s the breakdown of the biggest risks:

1. Weak Fundamentals – Dogecoin still doesn’t have a strong value proposition beyond “it’s fun.” That’s fine for trading, not for long-term investing.

2. Musk’s Whims – The same man who can pump the market with a meme can crash it by ignoring it. Building an asset class on one man’s Twitter feed is financial Russian roulette.

3. Momentum Risk – Once the hype cools, liquidity dries up fast. Traders chasing Musk’s posts often end up holding the bag when the momentum fades.

4. Lack of Real Adoption – While DOGE has been accepted for some merchandise and tipping, it hasn’t achieved serious traction as a payment method.

5. Short-Term Patterns Can Deceive – Even if the Adam & Eve breakout happens, there’s no guarantee it’ll hold. Technical patterns work… until they don’t.

In the short term, a 25% move up to $0.26 is entirely possible. The setup is there: bullish pattern, liquidity squeeze, and Musk’s unpredictable social-media gasoline. But the long-term story hasn’t changed. DOGE isn’t evolving into a serious financial network — it’s a cultural artifact of the internet age, an inside joke that somehow turned tradable.

 

Also read: Bitcoin Jumps Back to $111K After White House Says Shutdown Might End This Week