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Dogecoin and Ethereum surge following Musk-Trump truce: Examination

Cryptocurrency Dogecoin experiences surge following Elon Musk's unexpected apology to President Trump, fueling renewed ETF hopes for the sector's foremost meme coin.

Memecoin Dogecoin surged following Elon Musk's unexpected apology to Donald Trump, combined with...
Memecoin Dogecoin surged following Elon Musk's unexpected apology to Donald Trump, combined with renewed hope for an ETF approval, fueling optimism in the cryptocurrency market's top meme coin.

In the Heat of it: Crypto's Breakthrough Summer?

Dogecoin and Ethereum surge following Musk-Trump truce: Examination

It seems the summer season might just be a banner one for the cryptocurrency market, with meme coin favorite Dogecoin showing promising signs of bouncing back.

Dive into the Scene with SCENE

The crypto market's meme coin kingpin, Dogecoin, is witnessing a possible renaissance. The driving force? Elon Musk, the self-proclaimed meme coin aficionado. But it's not just Elon—take a look at the charts and you'll notice that market participants may have solid reasons to anticipate ongoing success for DOGE. And it's not just DOGE, Ethereum is also surfing a wave of bullish momentum.

Dogecoin today witnessed a surge of 6.32%, skyrocketing to $0.20 before pulling back to its current price of $0.19552, breaking the $0.19 resistance level. This surge was fueled by Elon Musk's apparent reconciliation with Donald Trump, helping alleviate political tensions and stoking speculation about ETF approval. Trading volume hit a staggering $1.65 billion, marking a colossal 827% jump from the previous day, underscoring the market's genuine interest behind the breakout.

The primary spark for the rally appears to stem from Elon Musk's attempt at a truce with Donald Trump, expressing remorse for comments he deemed excessive. This detente in their feud reduces perceived systemic risks for Musk's ventures, indirectly boosting DOGE's market confidence, given Musk's historical control over the meme coin's price swings. The 6% intraday spike to $0.199 occurred in sync with Musk's public apology.

Gasoline on the fire, Bloomberg analysts, led by Eric Balchunas, have upped Dogecoin's spot ETF approval chances to a whopping 80%, surpassing Cardano and Polkadot's 75% odds. The increased institutional interest signifies a seismic shift in DOGE's image, previously seen as a retail-driven meme currency. The presence of CFTC-regulated futures strengthens DOGE's case for ETF approval, potentially opening the doors for pension funds and institutional portfolios to invest in DOGE.

Technical indicators suggest that the bulls might be in control across multiple timeframes. DOGE is attempting to break above its 50-day EMA (average price over the last 50 days) at $0.1933, with the Relative Strength Index hovering around 48. The Average Directional Index, which measures a trend's strength, stands at 21, signaling a substantial weakening of the bearish trend that brought DOGE's price down from $0.25 to $0.16 in recent weeks.

Overall, the Crypto Fear & Greed Index has clocked 72 (squarely in "greed" territory), soaring from 57 last week, favoring risk-on assets. With the broader meme coin sector outperforming, the SPX6900 token is up 80% in the past 30 days, and Trump-themed coins and Doge clones are capitalizing on the wave.

Immediate resistance for DOGE looms around the $0.214 mark. A golden cross formation (a 50-day average crossing above the 200-day average) is on the horizon, but the gap between the two averages diminished on May 30, so expect a few more days of short-term bullish tendencies before confirming a medium-term bullish trend.

Key levels to keep an eye on: Resistance at $0.214, Support at $0.186

Ethereum Growing Strong

Ethereum experienced a 2.3% surge to approximately $2,880 before correcting to its current price of $2,819 over the past day, fueled by optimistic regulatory sentiment and both retail and institutional investors flooding Ethereum ETFs with $125 million yesterday. The dual catalysts of political pressure on the SEC and substantial on-chain accumulation have carried ETH through key resistance levels.

The bipartisan CLARITY Act inchingly nearing a vote could etch Ethereum's status as a CFTC-regulated commodity, putting an end to years of regulatory confusion and potentially unleashing avalanches of additional institutional investments.

Technical indicators paint a mixed yet bullish picture. ETH has broken above both its 10-day ($2,472) and 50-day EMA ($2,395), suggesting robust investor enthusiasm for the coin, with the RSI at 68 allowing room for further upward momentum before reaching overbought levels.

The ADX stands at 24, illustrating a robust bullish momentum in the price trend, with the potential for the asset to break free from the "death cross" formation soon. A death cross is when the short-term average (50-day EMA) slips below the long-term average (200-day EMA). This trend often freaks out the traders since it's generally not a popular trending direction.

But, despite all positive signs, there are still obstacles that the coin must hurdle. Based on chart analysis, today's doji—a neutral candlestick with long wicks and a small body—suggests that day traders might be feeling a bit fatigued, struggling to push prices higher after a significant week.

Additionally, competition from Solana's ecosystem, which processes five times Ethereum's daily transactions, poses a scalability quandary, albeit Ethereum retains dominance over institutional trust and stablecoin volume (908 billion vs. 18 billion).

Key levels to monitor: Resistance at $2,900, Support at $2,600-$2,400

Day-to-Day Insider

```Current Odds for Approval:- Dogecoin (DOGE) ETF: Initial predictions suggested a 51% chance of approval by 2025, but recently revised estimates indicate a lower probability, with a 15% chance before July, and a long-term 63% chance for 2025[1][5]. The SEC postponed decisions until summer 2025, which is affecting investor confidence[4][5].- Ethereum (ETH) ETF: The SEC also postponed decisions on Ethereum ETF staking until July 6, 2025, as part of a larger review of crypto ETFs[4]. No specific approval odds have been provided for Ethereum ETFs, but the delay highlights the measured approach of the SEC towards crypto ETFs.

Influence on Prices:- Dogecoin (DOGE): The anticipated approval of a Dogecoin ETF has triggered speculative price actions, including a brief surge followed by a 7% drop as hopes for an ETF approval soared[1]. The volatile nature of the cryptocurrency market means any news about ETF approvals can have profound effects on prices.- Ethereum (ETH): Ethereum has been spearheading a market rally in 2025, largely due to overall altcoin ETF approval optimism[3]. While Ethereum ETF staking remains under review, the broader enthusiasm for altcoin ETFs has contributed to Ethereum's price movements, as investors anticipate increased institutional participation.

The potential approval of these ETFs could entice more institutional investment, potentially stabilizing and raising the worth of these cryptocurrencies over time. Nevertheless, the regulatory uncertainties and delays prevail, continuing to influence market sentiment and volatility.```

The surge in Dogecoin's price can be attributable to Elon Musk's apparent reconciliation with Donald Trump, which has increased the chances of a Dogecoin ETF approval according to Bloomberg analysts.The Crypto Market's Fear & Greed Index has soared to 72, indicating a high level of 'greed' among investors, and the SPX6900 token has seen an 80% increase in the past 30 days.Ethereum, too, has experienced a 2.3% surge in price, fueled by optimistic regulatory sentiment and substantial on-chain accumulation, and technical indicators point towards robust investor enthusiasm for the coin.The CLARITY Act, if passed, could etch Ethereum's status as a CFTC-regulated commodity, potentially unleashing avalanches of additional institutional investments.*Despite the positive signs, the crypto market remains volatile, with regulatory uncertainties and delays continuing to influence market sentiment and price movements.

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