TradingKey – On Monday, July 7, Dogecoin (DOGE) extended its rebound, surging over 4% in the past 24 hours to a high of $0.1752 before easing back to $0.1711.

Dogecoin Price Chart – Source: TradingView.

The rally followed a surprise announcement on Saturday, July 5, when billionaire Elon Musk declared the formation of a new U.S. political movement called the “America Party.” In a post on X, Musk criticized the current political system as “wasteful and corrupt,” calling for a new party to restore individual freedoms and disrupt the status quo.

The news sparked a nearly 1% intraday bounce in DOGE, bringing its cumulative gain to over 7% since the announcement. However, Tesla (TSLA) — Musk’s flagship company — saw its stock plunge more than 7% in after-hours trading, as investors reacted to the potential risks of Musk’s political pivot.(To find out which institutions are selling Tesla shares, check out star investors)

President Donald Trump responded sharply, calling Musk a “derailed train” and criticizing the creation of a third party. Treasury Secretary Scott Bessent added that Musk should “focus on business, not politics”.

Find out more