Could Another Endorsement from Elon Musk Skyrocket Dogecoin Price?

Dogecoin price stabilized around $0.33 on Friday, halting a market downturn that saw a 15% decline over four days. Currently, the market struggles to rally. A resurgence in support from Elon Musk for DOGE could be imminent under certain conditions.

Elon Musk Ready to Back Dogecoin price Again? What Needs to Happen

In 2021, Elon Musk declared his willingness to fully back Dogecoin’s price contingent on major stakeholders scaling down their investments to combat the disproportionate concentration of wealth. 

The call for action aimed to foster a more equitable distribution of Dogecoin among its holders. Despite the initial buzz around Musk’s statement, recent trends show that wealth concentration is still a significant issue within the Dogecoin community.

If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue imo.

— Elon Musk (@elonmusk) February 14, 2021

The Gini, a statistical measure of distribution used to gauge inequality, has continued to climb, indicating that wealth among Dogecoin holders is increasingly concentrated.

In Dec 2021, the coefficient was recorded at 0.987 and has since edged closer to a perfect inequality score of 1, sitting at 0.995 in recent assessments. This rise suggests that despite broader market dynamics, the wealth disparity among Dogecoin investors is intensifying.

Analysis of Dogecoin wallets reveals varying trading behaviors, particularly among those holding between 1k and 1m coins. Notably, accounts with tens of millions of DOGE have consistently bought more during market dips and sold during highs. This strategy underscores a persistent accumulation trend among the largest holders, challenging the decentralized Dogecoin aims to promote.

Will Dogecoin Price Revist ATH?

In November, the meme coin experienced a notable surge, primarily driven by Elon Musk’s enhanced influence and direct involvement in the D.O.G.E. initiative. His engagement has sparked renewed optimism about Dogecoin overcoming key resistance levels.

At the time of writing, the DOGE price hovered at $0.33604, marking a slight 0.9% increase. The Relative Strength Index (RSI), currently at 46, indicates that Dogecoin is neither overbought nor oversold, presenting a neutral market sentiment.

As the Dogecoin price prediction approaches the $0.35 mark, traders might look for signs of sustained momentum. If it breaches this level, a test of higher resistance near the $0.50 range could be imminent. 

If bulls mount more pressure, the DOGE price could revisit the ATH seen in the 2021 bull run, which could surge by more than 54%. Conversely, a drop below current support levels might see it retreat to lower thresholds around $0.28.

In conclusion, Dogecoin’s stabilization and the prospect of Elon Musk’s support hinge on reduced concentration among major holders. If this shift occurs, DOGE might once again capture market enthusiasm and revisit its peak prices.