Dogecoin Surges 6% After Musk-Trump Reconciliation

Dogecoin, the leading meme coin, experienced a significant surge in price following a public reconciliation between Elon Musk and Donald Trump. Musk's apology to Trump, where he acknowledged that his recent comments had gone too far, marked a notable de-escalation in their feud. This reconciliation is particularly significant for Dogecoin investors, who are known to react strongly to news related to Musk. Trump had previously threatened to revoke $22 billion in SpaceX contracts, and Musk's conciliatory tone reduced systemic risk for his ventures, indirectly boosting confidence in Dogecoin. The 6% intraday spike to $0.199 coincided with Musk's public statement, highlighting the influence of Musk's statements on the meme coin's price movements.

Adding to the bullish momentum, analysts have upgraded Dogecoin's spot ETF approval odds to 80%, higher than other cryptocurrencies like Cardano and Polkadot. This institutional interest represents a shift for what has traditionally been viewed as a retail-driven meme asset. The availability of CFTC-regulated futures strengthens the case for ETF approval, potentially opening doors for pension funds and institutional portfolios to gain DOGE exposure.

Technical analysis shows some bullish signals across multiple timeframes. Dogecoin is attempting to break above its 50-day EMA at $0.1933, with the Relative Strength Index in the neutral zone at 48 points. The Average Directional Index, which indicates the strength of a specific price trend, is at 21 points, showing that the recent price correction is severely weakening the bearish trend that took the price of DOGE down from $0.25 to $0.16 in the last few weeks. The Crypto Fear & Greed Index has climbed to 72, favoring risk-on assets, and the broader meme coin sector is outperforming, with the SPX6900 token up 80% in the last 30 days.

Immediate resistance for Dogecoin sits at around $0.214. A golden cross formation, where the 50-day average crosses above the 200-day average, remains in play, but the gap stopped decreasing on May 30, indicating a few days of short-term bullish trends before a medium-term bullish trend can be confirmed. Next key levels to watch are resistance at $0.214 and support at $0.186.

Meanwhile, Ethereum also showed bullish momentum, jumping 2.3% to approximately $2,880 before correcting to its current price of $2,819 over the past 24 hours. This surge was driven by regulatory optimism and both retail and institutional investors pouring $125 million into Ethereum ETFs. The bipartisan CLARITY Act nearing a vote could cement Ethereum's status as a CFTC-regulated commodity, resolving years of regulatory ambiguity and potentially unlocking major funds in additional institutional inflows.

Technical indicators for Ethereum present a mixed but ultimately bullish picture. ETH broke above both its 10-day and 50-day EMA, hinting at big investor appetite for the coin, with the RSI at 68 showing room for further upside before reaching overbought conditions. The ADX at 24 also shows strong bullish momentum in the price trend, with potential for the asset to escape a “death cross” formation soon. However, a doji—a neutral candlestick with long wicks and almost no body—shows that day traders may be feeling a bit of exhaustion, having difficulty pushing prices upwards after a big week. Competition from Solana's ecosystem processing 5x Ethereum's daily transactions poses a scalability narrative threat, though ETH maintains dominance in institutional trust and stablecoin volume.

Next key levels to watch for Ethereum are resistance at $2,900 and support at $2,600-$2,400. Overall, the bullish momentum in both Dogecoin and Ethereum reflects a broader trend of optimism in the crypto market, driven by regulatory developments and institutional interest.