Dogecoin Rallies After Elon Musk's Apology to Trump, ETF Optimism Rises, and Ethereum Gains Momentum

Dogecoin surged following Elon Musk's unexpected public apology to Donald Trump, sparking renewed optimism for the meme coin amid growing

Elon Musk’s unexpected public apology to Donald Trump sparked a surge in Dogecoin, as the meme coin fl rallies following Elon Musk’s apology to Trump, ETF optimism, and Ethereum gains.

What Happened: Dogecoin price rose more than 6% in the last 24 hours and touched a high of $0.20 before settling at $0.195. The rally was fueled by Musk’s apology to Trump, which helped to reduce political tensions and sparked a massive increase in Dogecoin trading volume.

According to COINOTAG data, Dogecoin’s 24-hour trading volume soared 827% to reach $1.65 billion following Musk’s statement.

Musk’s conciliatory tweet, in which he admitted that his previous posts “went too far” and apologized to Trump, marked a pivotal moment, especially after a judge ordered him to pay $1 billion in damages for posts about a union at one of his companies.

This development eased risk concerns among investors closely tied to Musk’s ventures, especially after a recent report revealed that a single investor lost $540,000 in a single day due to a 50% price crash in August 2022.

The billionaire’s actions also come as the probability of Dogecoin’s spot ETF being approved by the U.S. Securities and Exchange Commission reached 80%, according to Bloomberg analysts led by Eric Balchunas.

This probability surpasses that of other altcoins like Cardano and Polkadot, and it’s a significant shift in perspective from the analysts who previously assigned a 30% chance to the meme coin back in June.

Also Read: Pay Attention! Elon Musk's SpaceX Could Be Key For Billions In Pension Funds Entering Bitcoin And Ethereum

Why It Matters: Musk’s apology and the increased probability of ETF approval come as the cryptocurrency market is showing signs of a broader bullish trend.

The price of Bitcoin rose above $72,000 during the last 24 hours, while Ethereum is trading above $2,800.

The existence of CFTC-regulated futures contracts for Bitcoin and other cryptocurrencies also strengthens the case for ETF approval, potentially unlocking access for pension funds and large institutional portfolios.

This institutional influx could mark a paradigm shift, enhancing Dogecoin’s legitimacy and liquidity in the broader crypto market.

Dogecoin is currently attempting to break above its 50-day exponential moving average EMA at $0.1933, a critical resistance level.

The Relative Strength Index RSI remains neutral at 48, indicating room for upward movement without entering overbought territory.

Average Directional Index ADX at 21 suggests that the recent bearish trend is weakening, potentially paving the way for a sustained upward trend.

The Crypto Fear & Greed Index has climbed to 72, firmly in “greed” territory, reflecting increased risk appetite among investors.

Dogecoin has immediate resistance at $0.214 and support levels around $0.186.

On the other hand, Ethereum showed strength with a 2.3% rise to nearly $2,880 before correcting slightly to $2,819.

This uptick was fueled by regulatory optimism and a substantial $125 million inflow into Ethereum ETFs, signaling robust demand from both retail and institutional investors.

The pending bipartisan CLARITY Act could classify Ethereum as a Commodities Futures Trading Commission-regulated commodity, resolving long-standing regulatory uncertainties and potentially unlocking further institutional capital.

This development coincides with a report from CCData, highlighting that in August, the total volume of cryptocurrency transactions on decentralized exchanges reached $908 billion, a significant sum.

For context, Solana’s ecosystem, which is known for its speed in processing transactions, handles about five times the daily volume of transactions on the Ethereum network.

Despite this impressive figure, Solana's transactions amount to approximately $18 billion, showcasing the vast scale of activity on Ethereum, which is largely driven by stablecoin transactions.

This disparity underscores the varying roles of these blockchain networks and the diverse avenues through which institutional and retail investors are engaging with the cryptocurrency market.