Dogecoin price poised for rally as Musk reignites dog memecoin frenzy

Dogecoin price may be on the verge of a major rally as traders accumulate post-crash and Musk’s X post adds fuel.

Summary

• Dogecoin price is consolidating above the $0.18 support zone after the flash crash, with volume delta data showing buyers steadily absorbing sell pressure.
• About 10.5 billion DOGE were acquired at around $0.21, creating short-term resistance that must be flipped into support for further upside.
• Elon Musk’s latest “Floki as CEO of X” post reignited memecoin hype, raising speculation that Dogecoin could benefit from a similar sentiment-driven rally.

Dogecoin’s (DOGE) price is showing signs of accumulation, consolidating above $0.18, with each dip being bought up. Traders are likely seeing the October 10 flash crash, when the broader market lost around $19 billion and DOGE briefly fell to $0.15, as a buying opportunity. After that sharp drop, Dogecoin price found support around $0.175–$0.18, tested it multiple times, but didn’t make new lows.

The Volume Delta indicator supports this accumulation narrative. The extreme negative delta during the crash has since moderated, and subsequent candles are showing smaller, balanced delta readings. This implies that buy orders are increasingly matching or absorbing sell-side liquidity.

Dogecoin price chart | Source: TradingViewHowever, as analyst Ali Martinez pointed out, around 10.5 billion DOGE were acquired at $0.21. This suggests that many holders who bought at that level are currently at a small unrealized loss, and may look to take profits if Dogecoin price revisits their entry levels, creating short-term resistance near $0.21. Therefore, for Dogecoin price to confirm a bullish breakout, it must reclaim and hold above the $0.21 level.

Adding to the cautiously bullish outlook is the recent X post by Elon Musk, in which he shared an AI-generated video of his Shiba Inu, Floki, humorously reinstating the dog as the “CEO of X.”

The post sent Floki (FLOKI) surging, and this momentum could spill over to Dogecoin, the original memecoin that Musk pumped in the past. Back in 2023, a similar wave of Musk’s dog-themed posts not only propelled Floki higher but also added more than $500 million to Dogecoin’s market cap in just 15 minutes.

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