Will Dogecoin Price Pump as Elon Musk Led DOGE Mulls $5,000 Stimulus Checks?

Dogecoin price has crashed this year as sentiment among meme coins wanes. It has retraced by double digits from its 2024 high as investors wait for a catalyst. One catalyst may be a $5,000 stimulus check being mulled by Elon Musk’s led DOGE team.

Dogecoin Price May Pump as Elon Musk Mulls Stimulus Checks

A potential catalyst for the Dogecoin price is a potential DOGE dividend. The dividend will be in the form of a $5,000 stimulus check sent to American taxpayers using the savings that the Department of Government Efficiency or DOGE has found.

Elon Musk and Scott Bessent, the Treasury Secretary, said that the DOGE team has already saved taxpayers $50 billion so far. Bessent added that the savings will likely be more as the team’s work continues. Elon Musk believes that the total savings could get to $2 trillion.

James Fishback, an American executive recommended that DOGE should consider distributing the savings to taxpayers. He said:

“President Trump and Elon Musk should announce a ‘DOGE Dividend’—a tax refund check sent to every taxpayer, funded exclusively with a portion of the total savings delivered by DOGE.”

In response to the X post, Elon Musk said that he would speak with the president about it. Such a stimulus check would likely lead to higher crypto prices mirroring to what happened in 2020 and 2021. At the time, Trump’s and Biden’s stimulus checks helped to push Bitcoin and DOGE prices higher.

However, it is unclear whether the stimulus checks will come as officials will be afraid of stimulating inflation. Also, a report by Bloomberg estimates that the real figure of the total savings so far is $16 billion.

DOGE Price Analysis: Elliot Wave Points to a Surge

The Dogecoin price chart shows that the coin may stage a strong comeback in the coming weeks. It recently crashed from a high of $0.4842 in November to a low of $0.2 this year. Its lowest point was a notable level since it was slightly above $0.2287, its highest swing in March last year. That is known as a break-and-retest pattern, which is a highly bullish sign.

An Elliot Wave analysis shows the value of DOGE is in currently in the fourth wave, which is a corrective one. This performance means that the coin will then move to the bullish fifth wave. A conservative move to last year’s high of $0.48 would be a 90% surge from the current level.

The bullish DOGE price forecast will become invalid if the coin crashes below the key support level at $0.20.