What’s going on?
Dogecoin (DOGE) saw a significant rally, rising from $0.15 to $0.43 in a matter of days, marking its highest level in over three years. The meme coin flipped XRP early Sunday after a 14% daily increase, contributing to a 55% gain over the past week.
The rally was further fueled by a statement from the government’s Ministry of Efficiency, which referred to “DOGE”, sparking market enthusiasm.
However, after reaching a high of $0.44 on November 12, DOGE corrected by 22% to $0.34 within hours. Since then, it has traded in a range of $0.34 to $0.44 as momentum slows.
Lawsuit against Elon Musk
The 2022 class action lawsuit accusing Elon Musk and Tesla of manipulating Dogecoin (DOGE) prices was withdrawn by the plaintiffs on November 14, 2024. Investors had alleged that Musk and Tesla engaged in a “crypto pyramid scheme” to inflate DOGE value, claiming $258 billion in damages.
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In the legal filing, the plaintiffs agreed to withdraw their appeal to the Second Circuit Court of Appeals and waived their right to pursue any further post-judgment action. Both sides also agreed to drop requests for sanctions related to the case. However, the withdrawal must still receive formal approval from U.S. District Judge Alvin K. Hellerstein for the litigation to be officially concluded.
The lawsuit centered on allegations that Musk manipulated DOGE prices through media appearances and social media posts.
DOGE Price Prediction
Dogecoin (DOGE) has seen significant bullish momentum recently, highlighted by a golden cross – a technical pattern where the 50-day moving average exceeds the 200-day moving average.
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Historically, this formation signals strong upward trends and has often preceded significant price increases. DOGE price surged, breaking through the resistance levels at $0.22 and $0.30, with rising trading volumes further confirming this momentum.
Veteran trader Peter Brandt highlighted DOGE’s adherence to classic charting principles. He pointed out a similarity between the current price action and a trend seen in 2020, where a sideways accumulation phase evolved into an inverse head and shoulders (H&S) formation.
This same pattern in 2024 contributed to DOGE’s massive 190% rally. Brandt’s analysis highlights the technical strength behind Dogecoin’s recent performance, suggesting the potential for lasting uptrends.