Dogecoin Surges 10% Amid Speculation on Trump Election Victory
Despite a slight downturn in the broader crypto market ahead of the US presidential election, Dogecoin (DOGE) has increased by 10% in the last 24 hours and over 20% from a local low of $0.14219 on Sunday. Analysts attribute this rise to speculation about the election's potential impact on Dogecoin.
Reasons for Dogecoin's Price Increase
Crypto analysts identify Dogecoin as a leading “Trump trade,” suggesting it serves as a proxy for betting on a Donald Trump victory. This connection follows Elon Musk’s proposal for a “Department of Government Efficiency” under a Trump administration.
Market commentary from Russian Market (@runews) implies that if Trump wins, “Elon Musk will land a role at the White House, potentially making Dogecoin one of the ‘official’ cryptocurrencies.” This speculation is believed to contribute to Dogecoin's rally despite declines in Bitcoin.
Mammon (@D_DTRADING) noted that Dogecoin might represent a leveraged bet on a Trump win, stating, “Dogecoin showing great relative strength... Doge to the moon??”
Miles Deutscher emphasized Dogecoin's role in the crypto market, indicating that its performance could drive attention and liquidity to the broader meme narrative: “Think of it as the spark that lights the fire.”
Pablo Heman (@RealPabloHeman) remarked that “DOGE is the only green in a sea of red cryptos,” linking Dogecoin's performance to political developments. He stated, “The polls are confusing... But the market does not lie!”
Andrea Capellini, founder of Freedom Trading Academy, suggested bullish potential for Dogecoin, predicting it could reach $0.47 if Trump and Elon Musk succeed. His technical analysis indicates key Fibonacci retracement levels from $0.05237 to $0.59546.
Currently, Dogecoin is testing resistance just below the 23.6% level at $0.21544. A breakout above this resistance may lead toward Capellini's target of $0.47. The Relative Strength Index (RSI) stands at 62.72, indicating growing bullish momentum without reaching overbought status. This supports a cautiously optimistic outlook for continued upward movement.
The weekly chart for Dogecoin shows a bullish pattern with higher lows and higher highs, signaling a sustained uptrend. However, DOGE faces a downtrend line previously acting as resistance. A decisive breakout above this line is essential to reach higher targets, including Capellini's projection of $0.47.
At press time, DOGE was trading at $0.16816.
