Dogecoin Breakout: Musk’s X Post Sparks 25% Rally to $0.26
Dogecoin jumped 2.5% to $0.20 after Elon Musk shared a Shiba Inu image on X, reviving bullish sentiment. The memecoin has rallied over 55% from its April low of $0.13 in two weeks.
Technical analysis highlights an Adam & Eve double bottom pattern. The neckline sits at $0.216. A confirmed breakout above this level could catalyze a 25% rally toward $0.26, near the 0.382 Fibonacci retracement on the weekly chart.
Futures data reveal heavy short positions between $0.215 and $0.27. This setup suggests a potential short squeeze that may accelerate Dogecoin’s upward momentum. Strong support near $0.18 underpins the recent gains.
Renewed social media buzz and improving market sentiment support further upside potential. Traders should watch for a close above $0.216 to capitalize on a possible Dogecoin breakout.
Bullish
This news is bullish for Dogecoin. In the short term, the Adam & Eve double bottom pattern and the potential short squeeze between $0.215 and $0.27 suggest an imminent upward move. A confirmed breakout above the $0.216 neckline could trigger quick gains, reinforced by improving market sentiment and Elon Musk’s social media influence. In the long term, sustained support near $0.18 and repeated Musk-driven rallies enhance the probability of continued bullish momentum, attracting more traders and fueling further price appreciation.