Dogecoin surged over 5% in the past day, buoyed by a wave of whale buying amid Elon Musk’s intriguing political maneuver. The cryptocurrency rallied from $0.163 to $0.171, with Musk’s rollout of the America Party providing a backdrop of optimism for a crypto-friendly political future. Trading volume exceeded 1.1 billion, reinforcing strong support at $0.166 as institutional investors, or “whales,” snapped up DOGE while smaller holders took a backseat.
Musk’s Political Gambit
Elon Musk’s announcement of the America Party has stirred up both political and crypto spheres. The new party—a bold endeavor unveiled over the weekend—has sparked debate with its pro-Bitcoin stance and sharp criticism of former President Trump’s policies, which Musk labeled as “anti-innovation.” While Musk refrained from explicitly mentioning Dogecoin in his political blueprint, his past endeavors—like integrating DOGE into Tesla and X platforms—have fueled speculation that the meme coin might play a symbolic or transactional role in his party’s agenda.
The timing of Musk’s announcement coincides with a period of broader economic uncertainty. President Trump’s impending tariff deadline on July 9 looms over global markets, contributing to volatility across both crypto and equity sectors. Yet, amid this turbulence, whale wallets have shown a resounding confidence in DOGE, particularly those holding between 1 million and 100 million DOGE. This insight from on-chain data firm IntoTheBlock highlights a potential trend of institutional backing, as seen in Ethereum and Dogecoin’s recent surge alongside Bitcoin.
Technical Dynamics in Play
From a technical perspective, DOGE’s price action has been nothing short of dynamic. The coin surged 5.01% between 6 July 03:00 and 7 July 02:00, buoyed by a breakout that occurred midday on 6 July, when prices jumped from $0.166 to $0.173 on the back of 1.14 billion in trading volume. Support remains robust at $0.166, with consolidation observed between $0.170 and $0.173 after peaking at $0.174.
Resistance, however, was not far behind. Late-session selling pressure on 6 July saw DOGE test resistance at $0.173, but the final trading hour witnessed the currency claw back 0.85%, breaking above the $0.171 mark with notable volume spikes at 01:16 and 01:36 totaling 20.8 million DOGE.
Broader Implications for the Crypto Market
The surge in DOGE amid Musk’s America Party launch raises intriguing questions about the future interplay between cryptocurrency and politics. Musk’s ventures have often blurred the lines between cultural phenomena and financial instruments, and this latest development could potentially elevate DOGE’s status as more than just a meme coin. For a broader perspective on how cryptocurrencies like Dogecoin are gaining traction, see our coverage on crypto ETFs and their potential impact.
However, the market’s response remains mixed. While whale accumulation suggests a vote of confidence, the retreat of smaller retail investors indicates a degree of skepticism. As July progresses, the crypto landscape will be closely watching how Musk’s political aspirations might translate into tangible impacts on the market—especially if DOGE becomes a more prominent fixture in his plans.
The current climate leaves analysts pondering: Can Musk’s political gambit sustain DOGE’s momentum in a market fraught with external pressures? The underlying questions of volatility and innovation remain unresolved, casting a shadow of uncertainty over the crypto realm. Yet, as history has shown, where Musk treads, waves follow—making the coming months a must-watch for both political and crypto enthusiasts alike.
Source
This article is based on: Dogecoin Sees Heavy Buying From Whales as Elon Musk Supports BTC in New Party Rollout
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
