Department of Government Efficiency (D.O.G.E.) Surges 250% Despite Doubts Around Elon Musk’s Role

Department of Government Efficiency (D.O.G.E.), a memecoin introduced in honor of the commission that Elon Musk heads in the Trump administration, just went full send. The D.O.G.E. memecoin price has skyrocketed by 250% in the past seven days.

In the past, the crypto price surged following developments linked to the government department focused on reducing excessive spending. These events typically sparked optimism around D.O.G.E.’s potential and increased relevance.

However, despite rising criticism aimed at Elon Musk and his team, the current rally is underway. So, what’s driving Dogecoin’s price higher this time? Let’s break it down in this analysis.

D.O.G.E. Rebounds Big

On the 4-hour chart, D.O.G.E. price hit $0.041 after it printed two consecutive bullish engulfing candles. Last Friday, the memecoin’s price was around $0.016.

However, the trend changed after breaking out the resistance levels at $0.022 and $0.031. The chart below shows that the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) positions also seem to have impacted the recent rally.

On Tuesday, May 13, the RSI reading dropped below the 50.00 mark, indicating that the momentum around the D.O.G.E. memecoin had turned bearish. But that decline did not take long as the RSI has hit 80.85 as of this writing.

The rise in the RSI reading indicates bullish momentum around the cryptocurrency. Likewise, CCN observed that the Exponential Moving Averages (EMAs) on the MACD have formed a bullish crossover.

A bullish crossover forms when the shorter EMA rises above the longer one. At press time, the 12 EMA (blue) has crossed over the 26 EMA (orange), validating the bullish trend.

Musk Blessing or Burden

If sustained, DOGE might break the next upper-level resistance near $0.052. Despite the surge in D.O.G.E.’s price, controversy continues to surround the Elon Musk-led Department of Government Efficiency.

About two weeks ago, CNBC reported how the department said it had saved  $160 billion from its slashing initiatives.

However, other reports reveal that key figures like Treasury Secretary Janet Yellen and Secretary of State Marco Rubio disagree with Musk’s approach to leading the department.

Regardless of the criticism, on-chain data from Santiment shows a notable uptick in Network Growth — a metric that tracks the number of new addresses interacting with the asset.

This rise suggests increasing adoption of the D.O.G.E. memecoin. If this trend continues, D.O.G.E.’s price might hit a higher value soon.

D.O.G.E. Price Analysis

The daily chart outlook also supports the possibility of an extended rally. As shown below, the D.O.G.E. price has broken out of a descending triangle, confirming the recent price surge.

A closer look at the setup reveals that the rise in the Money Flow Index (MFI) played a key role in maintaining price stability above the horizontal support at $0.011.

If the MFI continues to climb, it would signal sustained buying pressure, increasing the likelihood of D.O.G.E. trading higher.

Should this momentum hold, D.O.G.E could rally toward the $0.093 resistance. In an extremely bullish scenario, the price may even reach $0.016.

However, if profit-taking intensifies, the trend could reverse, potentially dragging the memecoin back to the $0.011 support level.

Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.

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