Dogecoin Price Approaches New High as Elon Musk Reaffirms Support
After closing above 36 cents for the first time since May 2021, Dogecoin price (#DOGE) is approaching a potential new all-time high (ATH). With a fully diluted valuation of approximately $56 billion and a daily trading volume exceeding $9.3 billion, DOGE gained 2 percent in the last 24 hours, trading at about $0.382 on November 19.
Dogecoin may consolidate around its current range before attempting to break the resistance level of approximately 43 cents. This pattern mirrors behavior seen during the 2020/2021 crypto bull market, where DOGE consolidated below its ATH prior to a parabolic rise.
In the four-hour timeframe, Dogecoin has been forming a descending triangular pattern, with support around 35 cents. A consistent close above 43 cents could propel DOGE towards a new all-time high.
Crypto analyst Ali Martinez has projected a midterm target of about 82 cents if Bitcoin remains above 37 cents in the coming days. However, this bullish outlook would be invalidated if Dogecoin falls below the support level of around 35 cents, risking further correction toward 29 cents.
#Dogecoin $DOGE is breaking out of a bull flag, which anticipates a 120% rally to $0.82 as long as the $0.37 support holds. pic.twitter.com/JPrGIzBnUn
— Ali (@ali_charts) November 19, 2024
Major Factors Fueling Bullish Sentiment for Dogecoin
The Dogecoin network has developed a robust meme coin community, despite lower development activity compared to other layer one (L1) blockchains. Recent on-chain data indicates over 5.3 million holders, primarily retail investors with balances under $1K.
Whale addresses on the Dogecoin network have increased since the recent U.S. elections. Support from pro-crypto leaders, notably President-elect Donald Trump, has significantly influenced Dogecoin's positive momentum. Trump's appointment of Elon Musk to lead the Department of Government Efficiency (D.O.G.E), inspired by the meme coin, further boosts sentiment.
— Elon Musk (@elonmusk) November 19, 2024
Musk has confirmed his continued holding of Dogecoin and expressed long-term support. The Dogecoin community expects Musk to integrate the token into X payments for merchandise purchases.
Institutional adoption of Dogecoin is rising, exemplified by Spirit Blockchain Capital Inc (CSE: SPIR), which recently acquired Dogecoin Portfolio Holdings Corp.