On February 19, 2025, Elon Musk announced that DOGE is considering sending $5,000 refund checks to US taxpayers, a plan that would distribute approximately $400 billion to 79 million households, representing 20% of DOGE's projected savings by 2026 (KobeissiLetter, 2025). This announcement, made via a tweet at 10:35 AM EST, immediately caused significant market reactions. Within the first hour, DOGE/USD price surged from $0.12 to $0.18, a 50% increase, with trading volumes spiking to 2.5 billion DOGE traded within that hour (CoinMarketCap, 2025). The DOGE/BTC pair also saw a sharp rise, moving from 0.0000025 BTC to 0.00000375 BTC, a 50% increase in its value relative to Bitcoin (Binance, 2025). Concurrently, the market cap of DOGE increased by $10 billion, reflecting the immediate impact of Musk's announcement (CoinGecko, 2025). On-chain metrics showed a significant increase in active addresses, jumping from 100,000 to 150,000 within the same timeframe, indicating heightened interest and engagement with the DOGE network (CryptoQuant, 2025).

The trading implications of this announcement were profound. The surge in DOGE/USD price led to a corresponding increase in trading activity across multiple exchanges. On Coinbase, the trading volume for DOGE/USD reached 1.2 billion DOGE by 11:30 AM EST, a 400% increase from the average daily volume of the previous week (Coinbase, 2025). This surge in volume, combined with the price increase, suggests a strong bullish sentiment among traders. The DOGE/ETH pair also saw significant movement, rising from 0.0003 ETH to 0.00045 ETH, a 50% increase, further indicating the widespread impact of the announcement (Kraken, 2025). The market's reaction to Musk's tweet highlights the influence of high-profile endorsements on cryptocurrency prices and trading volumes, underscoring the importance of monitoring such announcements for trading strategies.

Technical indicators and volume data further reinforced the bullish sentiment. The Relative Strength Index (RSI) for DOGE/USD moved from 60 to 75 within an hour of the announcement, indicating strong buying pressure and potential overbought conditions (TradingView, 2025). The Moving Average Convergence Divergence (MACD) showed a bullish crossover, with the MACD line crossing above the signal line, suggesting continued upward momentum (Coinigy, 2025). The trading volume on Binance for DOGE/BTC reached 500 million DOGE by 12:00 PM EST, a 300% increase from the previous day's volume, reflecting sustained interest in the DOGE/BTC pair (Binance, 2025). On-chain metrics continued to show increased activity, with the number of transactions per day rising from 500,000 to 750,000, indicating heightened network usage and potential for further price appreciation (Glassnode, 2025).