Dogecoin (DOGE) has jumped slightly by 1.3% in the last 24 hours after Tesla CEO Elon Musk won a lawsuit filed against him by DOGE investors.
US District Court Judge Alvin Hellersten dismissed the lawsuit on August 29. The plaintiffs had accused Musk and his electric vehicle manufacturing company Tesla of making “material representations” of Dogecoin.
The lawsuit stated that through X (formerly Twitter), Musk manipulated Dogecoin’s price by making statements about the coin such as labeling it his favorite currency, saying he would put Dogecoin in SpaceX and become Dogecoin’s CEO.
However, according to the judge, these statements did not warrant an offense, and the plaintiff’s complaint was dismissed.
“These statements are aspirational and puffery, not factual, and susceptible to being falsified. They cannot be the basis of [the] lawsuit… and no reasonable investor could rely upon them,” the judge stated.
The dismissal has stirred slight gains for DOGE, with the meme coin trading in the green today despite the rest of the top cryptos experiencing choppy price moves.
Is DOGE Set For a Rally?
The dismissal has renewed bullish sentiment around Dogecoin. According to one analyst on X, DOGE has flipped the 100-week Simple Moving Average (SMA) from resistance to support, signaling an upcoming rally.
Several technical indicators are already showing a bullish divergence around DOGE. The Relative Strength Index (RSI) is currently at 46, showing that sellers still control the price action.
However, the RSI line is moving up, forming a higher low. This shows that buyers entered the market. However, they have yet to overpower sellers. An influx of buyers is needed to support the uptrend.
The RSI is also showing a bullish divergence, with the RSI line moving above the signal line. This indicates that bullish momentum is currently in play.
The Moving Average Convergence Divergence (MACD) line further indicates a positive trend for DOGE. The MACD histogram bars have turned green, and the MACD line has moved above the signal line. This hints that buyers are taking charge, and more gains could be coming.
However, traders should wait for the MACD line to flip to the positive region to confirm the bullish sentiment.
DOGE has also flipped the $0.10 resistance level into a support. If buyers jump in to support the rally, a break towards a monthly high of $0.12 is possible.
