Elon Musk's status as the self-proclaimed "Dogefather" is once again on full display today with his latest post on X. The Tesla CEO's latest post has sent Dogecoin (CRYPTO: DOGE) tokens up 5.8% as of 1 p.m. ET, as investors in the meme token graciously accept his support.

Musk's latest post on X spelled out the name of what he apparently hopes will be his future government department (if Donald Trump wins the election) -- the "Department of Government Efficiency." Each word was written in descending lines, spelling out "DOGE" rather clearly for those reading his tweet.

Let's dive into what to make of this post, and where Dogecoin could be headed from here.

Dogecoin up again on continued support from Elon Musk

Plenty of crypto projects are crossing the chasm between innovative new technologies and politics, with former President Donald Trump's latest "World Liberty" project set to launch early next week.

However, aside from the political implications of Musk's recent tweet, Dogecoin investors are once again taking solace in the idea that the Tesla CEO hasn't abandoned the community altogether. The pace of his crypto-related tweets has slowed. But once in a while, he'll throw the community a bone.

Whether that's because Musk owns a significant amount of Dogecoin or not is really unknown. But today's move is notable, as it's brought the token back above the psychologically important $0.10 level, which could be a key technical level some investors focus on for trading reasons.

Where will Dogecoin go from here?

I have to be honest, Dogecoin is among the meme tokens I continue to have very little confidence in when it comes to the direction of its price movement over most time frames. This is a token that is probably best viewed as a trading vehicle and a sentiment gauge for the overall sector. And while Dogecoin does tend to pop on Elon Musk comments, the frequency of his posts on the subject, and the voracity of the moves, has varied depending on a number of external factors.

It's clear that investors are increasingly looking for reasons to add risk in this current environment, despite various macro headwinds that are impacting certain pockets of the market. I'm uncertain as to whether this momentum will continue over the medium term, making Dogecoin among the more speculative bets in this market reserved for those with the highest of risk tolerances.

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Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

Dogecoin Barks Higher Today on New Musk Post was originally published by The Motley Fool