Dogecoin Price Rebounds, Prominent Crypto Analyst Says Musk Could Start Promoting It Again

Dogecoin DOGE/USD traded near $0.1959 Wednesday, recovering from a weekly low of $0.179 after opening at $0.1911 the day prior. The rebound follows a 10% decline over the past week. Trading volume surged to $1.38 billion, suggesting renewed interest from both sellers and buyers as Santiment founder Maksim Balashhevich said Elon Musk could be poised to start hyping DOGE again.

Now that Musk is no longer working closely with the White House, Balashhevich said the Tesla Inc TSLA CEO could return to the type of Dogecoin promotion he's been noted to do in the past. Balashhevich pointed to a current drop in DOGE-related chatter, suggesting the potential for renewed attention if Musk resumes commentary. Previous price surges tied to his social media posts remain a reference point for traders.

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Meanwhile in the UK, the Insolvency Service has expanded its focus on crypto assets in investigations. According to Andrew Small, a newly appointed crypto intelligence specialist at the agency, there has been a sharp rise in crypto ownership identified in insolvency cases. The agency reported asset recoveries worth more than £523,000 in 2024, up from just £1,435 in 2019.

“Crypto is very much a recoverable asset,” Small said, noting that tokens, including Bitcoin BTC/USD, Ethereum ETH/USD, Dogecoin, and non-fungible tokens are now routinely traced and reclaimed. Neil Freebury, head of intelligence at the Insolvency Service, said the addition of specialist roles should improve asset recovery outcomes.

The shift underscores growing institutional attention on digital assets, with regulatory oversight extending into asset recovery and legal enforcement. The developments come ahead of new tax transparency rules set to take effect in 2026.

Bollinger Bands on Dogecoin's 4-hour chart have widened, and DOGE fell to the lower band near $0.17 before climbing back to the midline. The RSI reached an oversold level of 39.75 and has since turned upward.

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A golden cross has formed, with the 20-period simple moving average crossing above the 50-period on the 4-hour chart. A similar formation preceded a rally in early May. Analyst “Tardigrade” on social platform X, formerly Twitter, noted the recurrence of this setup, though such patterns are not predictive on their own.

Immediate resistance is visible near $0.183. A successful test of that level could open a path toward $0.200 or $0.217. Failure to hold current levels may lead to declines toward $0.165.

Longer-term projections using Fibonacci extension levels place upside targets at $1.27 (1.618), $1.56 (2.0), and $2.03 (2.618). Key support zones on the downside include $0.171, $0.135, and $0.0899, depending on broader market conditions.

Investors are watching for confirmation around $0.183. A higher break could attract momentum buyers. A rejection may lead to retests of support.

Traders should keep an eye on volume spikes, resistance tests, and the wider macro backdrop. Dogecoin is still volatile, but it’s growing.

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