Can Dogecoin Price Hit $10 As Elon Musk Signals Truce With Trump?

Billionaire Elon Musk, self-proclaimed as “DOGE Father”, publicly hinted at a truce with Donald Trump, gaining market attention. At the same time, Dogecoin (DOGE) price traded higher, crossing above the $0.2 resistance before slightly declining.

Consequently, this has stirred market speculation about a potential breakout for the top meme coin.

DOGE Father Suggests Reconciliation with Trump, Dogecoin Price to React?

Elon Musk posted a statement on X (formerly Twitter) addressing his previous comments about former U.S. President Donald Trump. In his post, Musk stated:

“I regret some of my posts about President Donald Trump last week. They went too far.”

The X post has quickly gained traction, with many likes and millions of views recorded within the initial hours.

Additionally, Musk’s acknowledgement came after a period of online friction between the two public figures. Critical posts from Musk circulated widely.

Notably, the timing of the tweet coincides with increasing attention on cryptocurrency markets, particularly Dogecoin price. Musk has publicly supported the meme coin over the years, earning the nickname DOGE father.

Important to note, Elon Musk led the Department of Government Efficiency (D.O.G.E.) in the Trump administration for a few months before resigning.

The acronym of the agency has a close resemblance to that of the meme coin, and hence the impact.

Dogecoin Volume Data Indicates Cooling Accumulation

Meanwhile, on-chain analytics from CryptoQuant revealed that Dogecoin price recent bottom coincided with a cooling phase in spot volume.

A volume bubble map indicated green signs, which implied that the accumulation activity took place at not very high trading levels.

These conditions frequently a precursor to price actions as more holders become exposed when the market is still reserved.

In the past, comparable cooling periods have signaled the start of the previous upward trends in Dogecoin price. In previous cycles, the accumulation at such stages preconditioned future rallies.

Even though the market conditions were not the same as in the previous periods, the structure suggested that a base was possibly developing.  This may provide price action with additional support in the next few months.

Dogecoin Price Action

Nevertheless, although Dogecoin price has recently seen a rise, the data indicated that the retail interest was minimal.

Another CryptoQuant chart that tracked the trading frequency by retail-sized accounts showed few red zones, which have in the past indicated an increase in retail activity. Lack of these indicators implies that individual investors are yet to re-enter the market in large numbers.

Moreover, the past Dogecoin price rallies were frequently marked by a sudden increase in the trading frequency among small investors. Such periods are typically synced with media-hyped zeal and massive transactional amounts.

However, the prevailing conditions suggest the movement could be institutional or long-term holder-driven, rather than retail-driven speculation.

This situation could be open to further development in case retail interest comes back towards the end of the cycle.

Technical Pattern Points To DOGE Price Bull Cycle

More so, chart analysis shared by Trader Tardigrade outlined a potential new bullish phase in Dogecoin price cycles. The monthly DOGE/USD chart shows a recurring pattern of consolidation followed by vertical price expansion.

In addition, similar structures appeared before the previous two major rallies. Each of those cycles began with symmetrical triangle formations and a breakout, followed by rapid upward moves.

Based on this model, Dogecoin price could be currently in what is known as “Cycle 3.” Should the price action continue in the same direction, there could be a target at $10 in the longer term.

Although speculative, the consistency of past patterns lends credibility to the forecast. Green indicators now seen on the chart resemble those that preceded earlier breakouts, aligning with broader market support for a new phase of growth.

At press time, Dogecoin price traded at $0.2008, up 1.97% in 24 hours. It recovered from $0.195 lows and hit intraday resistance near $0.202 before a slight pullback.

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