Dogecoin Price Rises 4.5% Following Elon Musk’s Government AI Deal
Dogecoin experienced a rebound from 50-day lows of $0.21 to consolidate around $0.23 following an announcement that Elon Musk's Grok AI received federal government approval for use. This development has sparked renewed interest in Dogecoin due to Musk's historical ties with the cryptocurrency.
- Dogecoin prices had dropped to $0.21 after xAI's statement about expanding its AI models to US federal agencies.
- The deal includes Grok 4 and Grok 4 Fast models priced at $0.42 per department, suggesting potential government adoption.
- Musk's involvement with Dogecoin dates back several years, highlighted by his past appointment as head of the Department of Government Efficiency (D.O.G.E.).
- Despite weak market activity, Dogecoin traders showed optimism over the weekend.
- Dogecoin open interest increased by 1.4% to $3.9 billion, indicating new bullish positions.
- Futures volume decreased by 17%, yet traders continued to add positions.
Price Forecast
- Dogecoin is trading near $0.231, facing resistance after rebounding from the lower Bollinger Band at $0.217.
- The daily RSI is at 44.07, indicating rising but not dominant buying momentum.
- Key upside target is the mid-Bollinger Band at $0.256; surpassing this could lead to $0.295.
- A breakout above $0.30 requires sustained speculation linked to Musk's ties with the Trump administration.
- Immediate support is at $0.217; falling below may test the $0.20 level.