Things are finally looking better for Dogecoin this week after a Bitcoin and Elon Musk-induced recovery that has sent it back above $0.20, hopefully ending a dark period during which the cryptocurrency shed a substantial amount of gains.

Dogecoin is currently trading at $0.21, which is slightly lower than the $0.23 peak that it achieved a few hours ago. Despite that, its price is still up by 12.44% in the last 24 hours and has delivered a 24.98% gain from its weekly low of $0.15.

Source: Binance

Dogecoin’s buying volume has prevailed in the last 6 days, reflecting the cryptocurrency’s price gains. The bullish momentum has so far pushed it back above its 7-day and 25-day moving averages, thus affirming the strong buying volume. Most of the buying is influenced by the positive market activity induced by Bitcoin’s rally during the last 6 days. However, it might also have something to do with a tweet by the Dogefather, Elon Musk.

The Tesla CEO seems to have a love-hate relationship with the Dogecoin community thanks to his tweets. For example, his earliest tweets about Dogecoin were seen as catalysts for the memecoin and people subsequently purchased the cryptocurrency, pushing it to its all-time high of $0.73. This was before the downfall that came after his unfavorable Doge-related comments during his SNL appearance, which also coincided with the strong bearish market correction that prevailed until now.

Musk recently posted a Matrix-inspired meme on Twitter. The meme features Neo from the Matrix movie asking whether he can make a lot of money through Dogecoin. A Shiba Inu dog wearing Morpheus glasses responds that Dogecoin is money. While the meme does not constitute a reason for hype, it highlights what the Tesla CEO thinks about the cryptocurrency and it could have far-reaching consequences. If the head of a major tech industry accepts Dogecoin as money, then his followers will likely share the same sentiments, thus potentially solidifying the cryptocurrency’s status.

Is Dogecoin still headed to the moon?

It is possible that many people will still consider Elon’s tweets about Dogecoin as price catalysts, but that might not be a good idea if history is anything to go by. However, a more reasonable catalyst would be something more useful like actually accepting Dogecoin payments. If Tesla was to embrace Dogecoin as payment for EVs and solar roofing tiles, then that would be a solid catalyst. Musk noted earlier this year that he plans to launch a space mission through his other company SpaceX in 2022, through which the payload would be paid for in Dogecoin. He noted the mission will be called DOGE-1.

Such a big endeavor would certainly be a huge catalyst for Dogecoin and possibly fuel another major rally for the cryptocurrency. However, that event is still months away, and there are other events that will influence the price action between now and then. Right now the market is being moved largely by Bitcoin but the recent gains are still at risk in case another major FUD event comes out.

Dogecoin still has a strong community that is determined to see the coin reach the moon. Some see the recent bear market as a chance to re-accumulate in preparation for another major price surge. The bulls have prevailed in the last few days, renewing hopes that the bullish trend that we saw earlier this year will resume. If that is the case, then Dogecoin might be in for another major rally in the coming days. Meanwhile, Doge still has some ground to cover before reaching its previous highs.