Dogecoin Surges 5% as Elon Musk’s America Party Backs Crypto

Dogecoin Surges 5% as Elon Musk’s America Party Fuels Crypto Optimism

A Political Twist Sparks Meme Coin Rally

Dogecoin (DOGE), the meme-inspired cryptocurrency, has surged over 5% in the past 24 hours, climbing from $0.163 to $0.171, following Elon Musk’s unexpected launch of the "America Party"—a political movement advocating for Bitcoin adoption and criticizing traditional fiat currencies as "hopeless" . The rally comes amid heightened trading volume exceeding 1.1 billion DOGE, with on-chain data revealing aggressive whale accumulation even as smaller investors exit the market .

The sudden price jump aligns with Musk’s latest pro-crypto stance, reigniting speculation about Dogecoin’s potential role in his political and financial vision. While Musk did not explicitly mention DOGE in his announcement, his historical endorsements—including Tesla’s DOGE payment integrations—have kept the market buzzing .

Whale Activity and Market Sentiment Signal Institutional Confidence

Data from IntoTheBlock indicates that large holders (wallets with 1M–100M DOGE) have been accumulating aggressively, suggesting renewed institutional interest despite broader market volatility . Meanwhile, retail participation has declined, a trend often seen before major price movements.

Technical analysis highlights strong support at $0.166, with resistance forming near $0.173. A breakout above this level could signal further upside, while failure to hold support may lead to a retest of lower ranges .

Political Catalysts and Market Reactions

Musk’s America Party rollout has intensified debates around cryptocurrency’s role in politics, particularly as it clashes with former President Donald Trump’s financial policies. Musk criticized Trump’s "anti-innovation" agenda, framing Bitcoin and crypto as essential to economic modernization .

This political friction coincides with broader market uncertainty, including Trump’s looming July 9 tariff deadline, which has contributed to volatility across crypto and equities .

Expert Views: Is This the Start of a DOGE Supercycle?

Analysts are divided on whether Dogecoin’s latest surge is sustainable. Some point to historical patterns where DOGE experienced parabolic rallies—such as its 25,000% gain in 2021—suggesting that the current accumulation phase could precede another major breakout .

Others caution that DOGE remains highly dependent on social media hype and lacks fundamental utility compared to Bitcoin or Ethereum. "Dogecoin’s price action is still largely driven by sentiment rather than technological advancements," notes a CoinDesk market analyst .

What’s Next for DOGE?

With the SEC expected to respond to a potential Dogecoin ETF filing by August 17, institutional interest could further legitimize the meme coin . If approved, an ETF could propel DOGE toward key resistance levels, including $0.25 and beyond .

However, regulatory risks and Musk’s unpredictable influence remain wild cards. Investors should monitor trading volume and whale movements for signs of sustained momentum.

Join the Discussion

Will Dogecoin break past $0.20 this month, or is this just another short-lived hype cycle? Share your thoughts on our X.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.

Sources:

• CoinDesk: "Dogecoin Sees Heavy Buying From Whales as Elon Musk Supports BTC in New Party Rollout"

• TradingView: "Dogecoin DOGE on Verge of Breakout of Year"

• AInvest: "Dogecoin Targets 1000% Rally Toward $1.60 by July 2025"

• CoinCentral: "Dogecoin (DOGE) Price Surges 5% Following Elon Musk’s America Party Launch"

• Invezz: "Dogecoin Jumps 8% as Musk Launches Pro-Crypto Political Party, Calls Fiat ‘Hopeless’"