Dogecoin Price Rallies 4.5% as Traders React to Elon Musk’s New US Government Deal
Dogecoin price held firm above $0,23 over the weekend, as market rebound stalls after Elon Musk’s Grok AI securing US government approval, sparking bullish bets across DOGE derivatives markets.
Dogecoin price opened trading at $0.23 on Sunday, Sept 28 as Elon Musk’s Grok AI approval for US federal use triggered a rebound from the weekly timeframe lows near $0.21.
Open interest in Dogecoin futures jumped 2.9% to $3.9 billion as traders defied thin liquidity and weak sentiment.
Trump’s approval of Elon Musk’s Grok AI suggests renewed alignment between the two.
After plunging to 50-day lows near $0.21 on Friday, Dogecoin price rebounded from 4% to consolidate around $0.23 on Sunday, Sept 28 as traders reacted to Elon Musk-led Grok AI’s approval for federal government use.
Dogecoin prices formed a local bottom at $0.21 following on xAI’s official statement on Thursday, which outlined the expansion of its Frontier AI models to all US federal agencies for a period of 18 months.
The deal includes Grok 4 and Grok 4 Fast models priced at just $0.42 per department, along with dedicated engineering support. The move revives speculation around Musk’s connections to the Dogecoin’s community
Announcing an expansion to xAI For Government – making industry leading Frontier AI accessible to United States Federal Government users.
1) All federal agencies and departments will get access to our Frontier AI models (Grok 4, Grok 4 Fast) for $0.42 per department for a period…
Derivative market data suggest Dogecoin traders maintained an optimistic outlook over the weekend, despite weak market activity.
Dogecoin (DOGE) Open interest rose 1.24% on Sunday, Sept 28 | Source: Coinglass
According to Coinglass, Dogecoin open interest rose 1.4% to $3.9 billion in the 24 hours. That represents over $110 million in new bullish DOGE positions deployed, even as $1.4 million in longs were liquidated compared to $438 in shorts.
Futures volume also fell 17% to $3.16 billion, confirming that Dogecoin traders defied thin liquidity to add new positions on Sunday.
Dogecoin Price Forecast: Key Levels Define Bullish and Bearish Scenarios
Dogecoin price currently trades near $0.231, facing heavy resistance after bouncing from the lower Bollinger Band at $0.217. The 4.5% intraday rebound and futures markets’ inflows of over $110 million on Friday suggest traders are positioning for more upside.
However, the daily RSI sits at 44.07, leaning toward neutral territory but still below the midpoint, showing that buying momentum is on the rise, but not yet dominant.
If momentum strengthens, the first upside target lies at the mid-Bollinger Band around $0.256. A close above this level would mark a short-term bullish reversal, clearing the path toward the $0.295 resistance zone near the upper band.
With the current weak sentiment in the crypto market, a Dogecoin price breakout above $0.30 would likely require persistent speculation linked to Elon Musk’s renewed alliance with the Trump administration.
On the downside, immediate support rests at $0.217. A breakdown below this level risks exposing the $0.20 zone, which has held firm since July.
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I’m a research analyst with experience supporting Web3 startups and financial organizations through data-driven insights and strategic analysis. My goal is to help organizations make smarter decisions by bridging the gap between traditional finance and blockchain innovation.
With a background in Economics, I bring a solid understanding of market dynamics, financial systems, and the broader economic forces shaping the crypto industry. I’m currently pursuing a Master’s degree in Blockchain and Distributed Ledger Technologies at the University of Malta, where I’m expanding my expertise in decentralized systems, smart contracts, and real-world blockchain applications.
I’m especially interested in project evaluation, tokenomics, and ecosystem growth strategies, as these are areas where innovation can drive lasting impact. By combining my academic foundation with hands-on experience, I aim to provide meaningful insights that add value to both the financial and blockchain sectors.
