Dogecoin (DOGE) Price Prediction: DOGE Struggles to Gain Upside Momentum Despite Elon Musk's Latest Social Media Post

Dogecoin price rose for the second day in a row on Tuesday, gaining more than 3 percent on the daily chart at some point before easing to 0.6 percent.

Dogecoin (CRYPTO:DOGE) price edged higher for the second day in a row on Tuesday, adding 0.6% to trade at $0.102 at the time of writing. The meme coin encountered difficulties in gaining upside momentum over the last two weeks following its ten-day successive decline between late July and early August. That steep decline brought about a bearish sentiment that has outshone the latest social media posting by DOGE’s most popular fan, Elon Musk.

Musk posted an image on his social media platform, X, pausing as an executive in the Department of Government Efficiency. As usual, Dogecoin’s active user community was quick to find clues in the post, concluding that the words Department of Government Efficiency were an abbreviation for the word “DOGE.” That triggered an upswing in the price, but the momentum fizzled out a few hours later.

Meanwhile, the crypto bellwether, Bitcoin (CRYPTO:BTC), set the pace for Tuesday’s market recovery with a retest of the psychological $60k mark. However, it failed to sustain the upturn and slipped back below that mark hours later, sending bearish ripples across the markets.

Dogecoin price momentum: The indicators on the 2-hour DOGE price chart show that the sellers are taking over the market. First, the asset has recently broken below the Volume Weighted Moving Average line. At the same time, the RSI is at 51, indicating a bullish undercurrent that could switch the momentum to the upside if the price stabilises above the VWMA line.

Support and resistance levels: The sellers currently have control of the market, as resistance persists at the 0.1036 pivot. The resulting momentum will likely set up the first support at 0.101. However, the sellers could breach that level and test 0.099 if they extend their control.

On the other hand, a move above 0.103 will favour the buyers to take control. In that case, the first resistance could come at 0.105, but if the buyers extend their control, they could break above that mark and invalidate the downside narrative. Furthermore, the resulting momentum could strengthen the upside movement to test 0.108.

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