Musk-Trump Truce Ignites Dogecoin Rally—Ethereum Catches the Wave: Market Frenzy Explained
When two of the most unpredictable billionaires bury the hatchet, crypto markets take notice. Dogecoin—Elon Musk''s favorite meme coin—just ripped double-digits on news of a Musk-Trump détente. Ethereum, ever the serious sibling, hitched a ride up.
Why the surge? Speculation''s cheaper than a DOGE transaction fee. Traders are betting the truce means smoother regulatory skies for crypto—or at least fewer tweetstorms tanking prices. Either way, the market''s voting with its wallet.
Meanwhile, Wall Street analysts clutch their pearls. ''This isn''t investing—it''s celebrity gossip with a blockchain,'' muttered one hedge fund manager between sips of $28 artisanal coffee. The crypto crowd? Too busy counting gains to care.
Dogecoin price trends. Image: TradingView
Overall, the Crypto Fear & Greed Index has climbed to 72 (firmly in “greed” territory), up from 57 last week, favoring risk-on assets. The broader meme coin sector is outperforming, with the SPX6900 token up 80% in the last 30 days and Trump-themed coins and Doge clones surfing the wave.
Immediate resistance sits at around $0.214 for DOGE. A golden cross formation (a 50-day average crossing above the 200-day average) remains in play, but the gap stopped decreasing on May 30, so there should still be a few days of short-term bullish trends before a medium-term bullish trend can be confirmed.
Ethereum up as cash flows into funds
Ethereum jumped 2.3% to approximately $2,880 before correcting to its current price of $2,819 over the past 24 hours, driven by regulatory Optimism and both retail and institutional investors pouring $125 million into Ethereum ETFs yesterday. The combined catalysts of political pressure on the SEC and significant on-chain accumulation have pushed ETH through key technical resistance levels.
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 present a mixed but ultimately bullish picture. ETH broke above both its 10-day ($2,472) and 50-day EMA ($2,395), 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 there is a strong bullish momentum in the price trend, with potential for the asset to escape a “death cross” formation soon. A death cross is when the short term prices (50-day EMA) go below the long term average (200-day EMA), and traders don’t usually like it when that happens.
However, despite all the good signs, there are also some challenges that the coin must overcome. Purely based on the charts, today’s 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.
Also, 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 ($120 billion vs. $18 billion).
