- Dogecoin price consolidates below $0.40 on Tuesday, down 3% from last week’s high.
- French President Emmanuel Macron has raised allegations of interference against Elon Musk ahead of Germany’s parliamentary elections.
- Musk’s historic influence within the memecoin community has sparked a cautious attitude among DOGE spot traders.
- In derivatives markets, traders opened $1.2 billion in new positions over the past 24 hours, pushing DOGE open interest above the $4 billion mark.
Dogecoin price consolidates below $0.40 on Tuesday, amid tailwinds from French President Emmanuel Macron who raised allegations of election interference involving Elon Musk on Monday. DOGE traders opened over $1.2 billion in new positions in the 24 hours after the close. news. Is DOGE price about to surpass $1 or reverse towards $0.30?
Dogecoin price stalls at $0.40 amid crypto rally as French president files complaints against Elon Musk
The price of Dogecoin consolidates below $0.40 on Tuesday, following Emmanuel Macron’s accusations against Elon Musk.
THE French The president accused Musk of using his X platform to influence the next German elections.
Musk’s historical influence over DOGE has made traders cautious, as his public statements often lead to significant price volatility.
Dogecoin (DOGEUSD) Price Action
The chart above shows how DOGE price has consolidated within the narrow $0.35 to $0.40 channel over the past three days, signaling hesitation on the part of traders.
Due to Musk’s historical influence, this news event is expected to trigger knee-jerk reactions among DOGE traders in the coming sessions.
DOGE traders deposit $1.2 billion in anticipation of volatile market reaction
While Macron’s allegations against Musk have attracted media attention, speculative traders are taking strategic steps to take advantage of expected market volatility.
Market data shows that DOGE traders opened an unusual volume of new positions in the 24 hours following the news.
Confirming this narrative, Coinglass’s Open Interest chart above tracks daily changes in total active futures positions listed for a specific crypto asset.
Dogecoin Open Interest | Source: Coinglass
Dogecoin open interest fell from $2.89 billion on Sunday to $4.07 at the time of writing on Tuesday.
This shows that DOGE traders opened new positions worth $1.18 billion in the 24 hours following Macron’s accusation against Elon Musk.
This unusual surge in open interest during a price consolidation phase is often interpreted as an early signal of an impending breakout phase.
First, increased market liquidity and investor interest place DOGE in a prime position for further advancement.
Even more, if Elon Musk effectively counters Macron’s accusations and changes the narrative, his influence could intensify the bullish sentiment among DOGE traders.
In addition, the widest crypto market the rally can provide a tailwind for DOGE.
With BTC rallying above $100,000, this could bolster market-wide optimism, pushing it past its $0.40 resistance level.
DOGE Price Forecast: Speculative Traders Bet on $0.50 Breakout
Dogecoin price rose 28% in the first five days of 2025, but has since failed to make a decisive breakout above $0.40.
DOGE traders accumulated $1.18 billion following Macron’s allegations against Musk, signaling widespread optimism about an imminent breakout toward $0.50.
Technical indicators on DOGEUSD daily chart also confirms this bullish forecast for the price of Dogecoin.
Dogecoin Price Forecast | DOGEUSD
Dogecoin price continues to trade within the upper range of the Keltner channel, indicating significant growth potential.
The Bull Bear Power indicator is moving in positive values, also affirming that buyers are taking control.
If these conditions persist, a sustained DOGE price close above $0.41 could pave the way for a breakout towards $0.50.
The recent rise has pushed DOGE to test $0.40, a key resistance level. If traders maintain the buying pressure, the next resistance levels are $0.45 and $0.50.
Conversely, failure to hold $0.40 could result in a pullback to the $0.36 support level, near the Keltner midline.
A break below this level could trigger further declines towards $0.33, the lower boundary of the channel.