Dogecoin jumps as Musk’s post revives market optimism

• Dogecoin jumps 2.5% to $0.20 as Elon Musk’s new X post sparks renewed investor optimism.
• DOGE forms bullish “Adam and Eve” pattern, signaling potential 25% upside toward $0.26.
• Short squeeze setup may accelerate Dogecoin’s rally if price breaks above $0.216 neckline.

Dogecoin (DOGEUSD) climbed sharply on Monday after renewed social media buzz from Elon Musk reignited interest in the top memecoin.

The token gained 2.5% to $0.20, extending a two-week rally that has lifted prices by more than 55% from recent lows.

The move followed Musk’s latest post on X, featuring the Shiba Inu mascot synonymous with Dogecoin.

The tweet quickly went viral, prompting a 29% intraday surge in DOGE’s price as traders and retail investors flocked back to the token.

Dogecoin’s latest upswing underscores its continued sensitivity to Musk’s online activity.

The Tesla and SpaceX CEO has a long history of influencing DOGE’s trajectory, most notably during the 2021 rally that sent the token from a fraction of a cent to nearly $0.73.

With broader crypto market sentiment improving and technical indicators turning bullish, Dogecoin appears poised for further upside momentum through the second half of October.

Bullish double-bottom pattern suggests further upside

CoinTelegraph’s technical analysis points to a developing “Adam and Eve” double-bottom formation on Dogecoin’s chart — a classic bullish reversal pattern.

The structure features a sharp “V”-shaped dip (Adam) followed by a more rounded recovery phase (Eve), typically signaling that selling pressure is waning and buyers are regaining control.

DOGE’s neckline — the resistance level that confirms a breakout — sits near $0.216.

A successful close above this level could trigger a follow-through move toward $0.260, representing an upside potential of roughly 25% from current prices.

This price target aligns with the pattern’s measured move projection and coincides with a significant technical confluence zone.

It also matches the 0.382 Fibonacci retracement level on Dogecoin’s weekly chart, reinforcing the case for continued bullish momentum.

Adding to the optimism, DOGE has rebounded from a strong support confluence formed by an ascending trendline and the 0.236 Fibonacci level.

This confluence suggests that buyers are defending lower price levels effectively, providing a technical base for a potential rally toward $0.26 in the near term.

Short squeeze could accelerate Dogecoin rally

Market data from futures exchanges indicates a potential setup for a short squeeze — a scenario where bearish traders are forced to close their positions as prices rise, further driving the rally.

Futures positioning shows a dense cluster of short liquidation levels between $0.215 and $0.27, while long liquidation levels are relatively sparse below $0.18.

This asymmetry suggests that downside risk is limited, as there are fewer leveraged long positions that could trigger cascading sell-offs.

In contrast, the upper price range is packed with short positions that could be rapidly liquidated if Dogecoin breaks above the $0.216 neckline.

Such an event would likely amplify buying momentum as short traders are compelled to buy back into the market, potentially accelerating the move toward the $0.26 target.

Outlook: momentum builds ahead of key resistance

Dogecoin’s recent recovery highlights renewed speculative interest in memecoins as traders look for high-volatility opportunities amid a broader crypto rebound.

While the token remains highly sensitive to social media influence, technical signals point to improving structure and strong near-term support.

If DOGE confirms a breakout above $0.216, the path toward $0.26 could open quickly — a move supported by both bullish chart patterns and futures market positioning.

However, failure to sustain above key resistance levels may keep the token range-bound in the short term.

For now, Elon Musk’s latest post has once again reminded markets of Dogecoin’s unique blend of cultural influence, retail enthusiasm, and technical volatility — a mix that continues to make it one of the most closely watched assets in the cryptocurrency space.