Dogecoin DOGE/USD is enjoying a bounce as part of a wider relief rally and has again drawn the interest of Tesla CEO Elon Musk.

What Happened: Dogecoin has rallied 8% in the past 24 hours, trading at $0.1029 at the time of writing. Crypto technical analyst Ali Martinez predicts a sustained close above $0.10 could push the meme coin out of its bullish falling wedge pattern to $0.15.

He stated, "Imagine if, after all this craziness, Dogecoin is the one to break out and kick off the next leg up."

Imagine if, after all this craziness, #Dogecoin is the one to break out and kick off the next leg up… 👀

Watch out for this falling wedge on the $DOGE daily chart — a sustained close above $0.10 could spark a bullish run to $0.15! pic.twitter.com/oGIeR3yHtF — Ali (@ali_charts) September 9, 2024

Another crypto trader, Javon Marks, also highlighted a possible"multi-month Falling Wedge breakout." He added that a successful break could more than double Dogecoin’s price to $0.22, with an ultimate price target of $0.6533.

Why It Matters: Elon Musk teased the Dogecoin community by replying to a post of Dogecoin community account ‘DogeDesigner’. Musk replied to a humorous post about the “Department of Government Efficiency,” a nod to Musk’s rumored role in a Trump administration, with "our official mascot will be the Doge." Over the weekend, Musk had already tweeted an AI image of himself with "Department of Government Efficiency" and “DOGE” references in the image.

Naturally, our official mascot will be the Doge — Elon Musk (@elonmusk) September 9, 2024

Crypto trader Unipcs thinks Musk is "seemingly intending to shill DOGE" and with October as “one of best months historically” thinks it is “all in time for rate cuts next week.” He concluded, "I can’t help but feel things are about to get mental for crypto and meme coins in particular."

According to IntoTheBlock data, Dogecoin's large transaction volume has increased by 16% and daily active addresses by 0.99% over the past 24 hours. Exchanges netflows are down 1,085.9%. Around 72% of Dogecoin holders are currently in profit.

What’s Next: The influence of meme coins is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

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