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Highlights
- Dogecoin broke above the 5-day SMA, signaling short-term bullish momentum after Trump’s endorsement of Elon Musk’s government position.
- A breakout above $0.1761 resistance could send DOGE toward $0.20, with rising volume supporting the bullish case.
- If DOGE loses support at $0.1709, a retracement toward $0.16 remains possible, mirroring Tron’s current price consolidation.
Dogecoin (DOGE) price surged 7% from its opening price of $0.16 to hit $0.18 on Tuesday, fueled by renewed market optimism and a key statement from U.S. President Donald Trump regarding Elon Musk’s role in government.
Dogecoin (DOGE) Surges 7% After Panic Sell-offs on Monday
Dogecoin was among the best-performing cryptocurrencies on Tuesday, significantly outperforming the broader market recovery. While leading assets such as Ethereum (ETH) and Solana (SOL) posted modest gains of less than 3%, DOGE rallied by over 7%, attracting heightened investor interest.
According to TradingView data, DOGE opened trading at $0.16 before climbing to an intraday high of $0.18. This strong upside movement reflects bullish sentiment as traders anticipate further gains if macro economic sentiment stabilizes.
Notably, the ongoing DOGE price recovery on Tuesday comes after last week’s turbulence, which saw DOGE struggle under macroeconomic pressures, including the impact of Trump’s tariff policies and broader crypto market volatility. However, Tuesday’s rally suggests that investors are regaining confidence in the meme coin’s prospects.
Trump Vows to Keep Elon Musk at DOGE for “As Long as Possible”
Dogecoin’s recent price struggles were partially attributed to uncertainty surrounding Elon Musk’s role in the Department of Government Efficiency (D.O.G.E). Speculation about Musk’s potential resignation created market jitters, leading to a temporary dip in DOGE’s value.
However, according to a report by USAToday, President Donald Trump has reaffirmed his commitment to keeping Musk in the administration for as long as possible.
“I’d keep him as long as I could keep him,” Trump said. “He’s a very talented guy. You know, I love very smart people. And he’s very smart, and he’s done a good job.”
– US President Donald Trump on Elon Musk’s participation in the Republican administration, March 31, 2025
Trump acknowledged Musk’s contributions to government efficiency efforts but also noted that his tenure could be nearing an end. “I think he’s been amazing, but I also think he’s got a big company to run,” Trump told reporters. “And at some point, he’s going to be going back. He wants to.”
Musk, serving as a special government employee, is currently overseeing DOGE’s cost-cutting initiatives but is expected to conclude his role by the end of May unless his government status is extended. Despite the potential transition, Trump’s endorsement of Musk’s work has eased concerns among Dogecoin traders, fueling short-term optimism that saw DOGE price outperform the likes of SOL, ETH and XRP, on Tuesday.
Dogecoin Price Forecast: DOGE Breaks 5-Day SMA, Eyes $0.20 if Momentum Holds
Dogecoin price forecast charts below show that the largest memecoin by market cap has surged past the 5-day SMA at $0.17 following Trump’s statement on keeping Elon Musk in government.
This clean break above the short-term moving average suggests firm bullish dominance, after the major panic sell-off on Monday.
DOGE’s uptrend could extend toward the $0.20 resistance if buyers sustain momentum. The recent rally aligns with higher volume inflows, confirming renewed investor interest. However, rejection at the 13-day SMA ($0.18) highlights an ongoing struggle between bulls and bears. A close above this level would validate further upside potential.
The bearish case remains as price action shows lower highs, signalling possible exhaustion. If DOGE loses support at $0.17, a decline to $0.16 could follow..
For now, DOGE’s bullish case holds as long as it trades above the 5-day SMA. Bullish swing traders may look for confirmation above $0.18 before targeting $0.20 in the coming days.
Frequently Asked Questions (FAQs)
1. 1. Why did Dogecoin price surge on Tuesday?
2. What key resistance levels should traders watch for DOGE?
3. Could Dogecoin retrace after this rally?
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