Dogecoin Rallies 8% as Elon Musk’s Tweet Sparks Meme Coin Rebound

Dogecoin (DOGE) surged more than 8% on Monday, leading a rebound in the meme coin sector. A major rally could be on the horizon if DOGE completes a key move within a falling wedge pattern.

DOGE Trends Following Elon Musk’s Post Dogecoin has become one of the most trending tokens in the last 24 hours, according to Santiment data. The heightened social buzz around DOGE stems from a post by Tesla and X (formerly Twitter) CEO Elon Musk, where he referenced the Department of Government Efficiency, abbreviated as “DOGE.” Dogecoin community members quickly linked Musk’s tweet to the DOGE meme coin.

Popular Dogecoin enthusiast @cb_doge posted a Lion King-themed DOGE meme, which captured Musk’s attention. The post seemed to ignite positive sentiment, leading DOGE to an 8% rally over the past 24 hours, driving recovery in the broader meme coin sector.

This price increase has brought DOGE into a significant accumulation zone, where investors have acquired over 60 billion DOGE tokens. If DOGE can sustain a rise above this zone, it could form a strong support level. On the flip side, some investors might sell off as they reach break-even points, potentially leading to a correction.

DOGE Could Spark a Massive Rally if it Overcomes Key Resistance Currently, Dogecoin is trading around $0.103, up 8% for the day. Over the past 24 hours, DOGE has seen $2.45 million in liquidations, with $175,450 in long liquidations and $2.27 million in short liquidations.

DOGE is trading within a falling wedge pattern on the 12-hour chart, which shows lower highs and lower lows. This suggests weakening bearish momentum as buyers begin to re-enter the market. The key price resistance to watch is $0.111—if DOGE surpasses this level without a significant correction, it could rally toward the next resistance around $0.142. Successfully breaking this point may see DOGE challenging a six-month resistance at $0.175.

An important indicator to monitor is Dogecoin’s open interest (OI), which reflects the total number of unsettled long and short positions in the derivatives market. Currently, DOGE’s OI stands at $480 million, but it will need to grow to support the ongoing buying momentum.

The Relative Strength Index (RSI) sits above its midpoint at 59, signaling increasing bullish sentiment, while the Stochastic Oscillator has entered the oversold territory, suggesting a potential short-term price correction.

If DOGE’s daily candlestick closes below the $0.088 support level, it could strengthen the bears and invalidate the bullish outlook.