On April 2, a spate of speculation created a ripple in the world of crypto: was Elon Musk severing ties with Dogecoin? The rumor spread rapidly, unsettling traders and holders of $DOGE. But by late morning, the narrative flipped — and the market responded with a sudden, sharp rally.
White House Clears the Air: Musk Still Supports Dogecoin
At 10:45 AM EST, White House Press Secretary Karine Leavitt addressed the circulating rumors during a press briefing. She dismissed them as “garbage” and reaffirmed Elon Musk’s ongoing involvement with Dogecoin, stating, “He would only leave DOGE once his work is through,” signaling long-term commitment.
The impact on the market was immediate. Dogecoin’s price jumped 7.3% within an hour, moving from $0.39 to $0.42 by 11:45 AM. This sudden shift highlighted the immense influence a few choice words can have in the ever-volatile world of crypto.
Volume Spikes, On-Chain Activity Follows
Alongside the price spike came a massive increase in trading volume. According to CoinGecko, daily Dogecoin volume jumped from 15 billion to 22 billion DOGE. Activity in related trading pairs also surged: DOGE/BTC volume rose by 35%, and DOGE/ETH saw a 28% increase.
On-chain metrics confirmed the wave of activity. Active Dogecoin addresses increased by 12%, reaching 1.3 million users. Daily transactions grew by 15% to 2.5 million, and the network hash rate rose 8% to 1.2 TH/s — a strong sign of growing miner participation and confidence.
A Ripple Effect Throughout the Market
Musk-linked assets didn’t go unnoticed. Bitcoin rose by 1.8%, hitting $68,500, while Ethereum gained 2.5%, reaching $3,800. Even fellow memecoin Shiba Inu (SHIB) saw a 5.2% bump, trading at $0.000025.
From a technical standpoint, DOGE breaking through its 50-day moving average of $0.39 signaled bullish momentum. The Relative Strength Index (RSI) hit 72 — entering overbought territory — which reflects strong buying pressure, though it may also foreshadow a potential short-term correction.
AI and Momentum Trading Systems Shift Strategy
The market move triggered reactions in algorithmic and AI-based trading systems. Algorithms focused on momentum and sentiment adjusted to the surge by increasing exposure to DOGE and other memecoins. Even AI-related tokens like SingularityNET (AGIX) and Fetch.AI (FET) recorded modest gains of 3.2% and 2.8%, likely driven by speculative spillover from Dogecoin’s rally.
What’s Next for DOGE?
Elon Musk’s reaffirmation of his commitment to Dogecoin has given the asset a short-term boost in confidence. With high trading volumes and bullish technical indicators, further gains may be on the horizon. However, Dogecoin’s history of volatile swings in response to news and sentiment means any rally could be fleeting without sustained attention or development.
Once again, the crypto space was reminded of how quickly narratives can shift — and how deeply public figures can influence the market. For now, $DOGE remains closely tied to Elon Musk’s words, making it one of the most thrilling — and unpredictable — assets in the space.
