Dogecoin predicted to grow by 90% thanks to Elon Musk

Analysts predict a potential increase in the price of Dogecoin by 90%. The main catalyst may be Elon Musk' s recent tweet, which again mentioned memecoin.

The Dogecoin price is trying to overcome an important resistance level. Successful overcoming of this level will confirm the positive trend. Technical indicators, such as the MACD, indicate an increase in bullish momentum and a change in market sentiment.

However, there are factors restraining growth. Large investors, the so-called «whales,» are only minimally increasing their assets in Dogecoin. Over the past two weeks, they have added only $ 300 million worth of cryptocurrency. Such caution may slow down the rate’s recovery.

Analysts are considering a scenario where Dogecoin breaks out of the bullish descending wedge pattern. If successful, this could lead to a price increase of up to $ 0.20. However, to confirm this scenario, the price needs to consolidate above $ 0.1168.

There are also risks. The breakout may turn out to be false, as it already happened in July. In this case, the price of Dogecoin could drop to $ 0.10 or lower.

Elon Musk remains an important factor influencing the Dogecoin price. His recent joking tweet about his readiness to head the «Department of Government Effectiveness» (DOGE) in the Donald Trump administration has sparked new interest in the cryptocurrency.