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Dogecoin rebounded from a key support zone as Bitcoin’s strength lifted market sentiment, while a US judge ordered Elon Musk and others to face depositions in a lawsuit tied to USAID cuts. The meme coin jumped from the $0.08 area after weeks of decline, as buyers returned with force. At the same time, legal scrutiny intensified around Musk’s past role in government cost-cutting efforts.
Dogecoin surged from the $0.08 zone after spending weeks inside a descending channel.
During that period, price action formed lower highs and lower lows, which signaled sustained bearish control. Trading volume also declined during the slide, suggesting sellers gradually lost conviction.
As DOGE price approached $0.08, buyers entered aggressively and reversed the trend. The rebound marked a possible shift in market structure after extended consolidation. Bitcoin’s momentum supported the move and lifted broader crypto sentiment.
Attention has now shifted to the $0.13 level as the next key test. That price marks the upper boundary of the prior descending channel. A daily close above it would confirm a break from the bearish structure.
Holding above $0.13 would validate the breakout on a daily timeframe. Such confirmation often draws traders who wait for clearer signals before entering positions. It could also force short sellers to exit positions if prices continue rising.
If buyers maintain control, the next target sits near $0.15. Historical price action shows limited resistance in that zone. A move there would mark progress after weeks of sustained weakness.
More ambitious projections point to $0.21 as an intermediate target. That level previously attracted strong selling pressure during past rallies. Order books show heavy resistance clustered around that price point.
Dogecoin’s outlook remains closely tied to Bitcoin’s stability. Any sharp correction in Bitcoin could weaken the rally across correlated assets. For that reason, traders continue to track Bitcoin alongside Dogecoin charts.
Meanwhile, legal developments involving Elon Musk added a separate headline risk this week. US District Judge Theodore Chuang rejected a request to block Musk’s deposition. The order also included former acting USAID director Peter Marocco and State Department official Jeremy Lewin.
The lawsuit came from current and terminated USAID employees who remain anonymous. Musk’s legal team cited the “apex doctrine” to avoid the deposition. Chuang said the officials failed to show why the rule applied in this case.
Chuang also said the defendants offered no clear evidence explaining the shutdown of USAID headquarters and its website. The filing named Marco Rubio, Kenneth Jackson, and Amy Gleason as defendants. USAID had faced deep staffing cuts during Musk’s involvement in government efficiency efforts.
USAID reduced staff from about 10,000 to 300 last February as part of spending cuts. Musk stepped back from the Department of Government Efficiency in May. How long can Dogecoin’s rebound hold if legal pressure and Bitcoin volatility rise together?
Also Read: Dogecoin at Crossroads: Next Big Breakout or Meme Collapse?
Dogecoin price rebounded from the $0.08 support as Bitcoin momentum lifted market sentiment. Traders now focus on the $0.13 resistance to confirm a trend shift. Further gains toward $0.15 or $0.21 depend on sustained buying and Bitcoin stability amid ongoing legal developments tied to Elon Musk.
