Este artículo también está disponible en español.
Amidst the broader cryptocurrency market facing a mild decline ahead of the US presidential election, Dogecoin (DOGE) has remarkably defied this trend by surging approximately 10% in the past 24 hours. Over the last three days, DOGE has rallied over 20% from its recent low of $0.14219 recorded on Sunday. Analysts suggest this impressive performance is driven by speculation regarding the election’s potential impact on Dogecoin.
Understanding the Recent Surge in Dogecoin’s Price
Several cryptocurrency analysts have pinpointed Dogecoin as the leading “Trump trade” within the crypto market, acting as a proxy for anticipating a Donald Trump victory in the presidential election. This connection is influenced by Elon Musk’s proposal to spearhead a “Department of Government Efficiency” (D.O.G.E.) under a Trump administration, aimed at reducing government expenditure.
Russian Market (@runews) speculated that a Trump win could result in Elon Musk securing a role at the White House, potentially elevating Dogecoin to one of the “official” cryptocurrencies. This speculation is considered one of the factors fueling Dogecoin’s rally, even as Bitcoin experiences a downturn.
Related Insights on Dogecoin’s Performance
Crypto analyst Mammon (@D_DTRADING) also underscored Dogecoin’s robust performance, suggesting it may have become a leveraged bet for a Trump victory. He commented, “Dogecoin is demonstrating significant relative strength, and in my opinion, this is linked to Elon’s involvement in supporting Trump. It could be that Dogecoin has emerged as a leveraged bet for a Trump win. Trump win > Doge to the moon??”
Miles Deutscher emphasized Dogecoin’s role as a catalyst within the crypto market: “DOGE pumps (D.O.G.E initiative will propel DOGE + it’s already showing strength as a proxy). DOGE, as the meme leader, will also drive attention and liquidity rotation to the broader meme narrative. Think of it as the spark that ignites the fire.”
Former investment bank trader Pablo Heman (@RealPabloHeman) noted that “DOGE is the only green in a sea of red cryptos,” suggesting a correlation between Dogecoin’s performance and the evolving political landscape. He stated, “The polls are confusing and contradicting, and actually they are FAKE! But the market does not lie! There is a clear, late surge in DJT, the Trump stock, which is now forming a Bullish Engulfing Pattern over yesterday’s red bar. […] Additionally, DOGE is the only green in a sea of red cryptos. So, keep in mind Trump = DJT and Elon Musk = DOGE.”
Technical Analysis and Future Projections for Dogecoin
Andrea Capellini, the founder of Freedom Trading Academy, expressed bullish sentiments regarding Dogecoin’s potential, suggesting that a Trump and Elon win could propel DOGE to $0.47. Capellini’s technical analysis highlights key Fibonacci retracement levels, applied from the low of $0.05237 to the recent peak of $0.59546.
Currently, Dogecoin’s price is testing the resistance zone just below the 23.6% level at $0.21544. Breaking through this resistance could open the path toward Capellini’s target of $0.47. The Relative Strength Index (RSI), a momentum oscillator, stands at 62.72, placing it in the upper neutral zone. This reading indicates growing bullish momentum without entering overbought territory (above 70). The current RSI level supports a cautiously optimistic outlook for the continuation of the upward trend.
Furthermore, the weekly chart for Dogecoin reveals a bullish pattern characterized by a series of higher lows and higher highs, a classic sign of a sustained uptrend. However, DOGE is currently confronting a downtrend line that has previously acted as resistance. A decisive breakout above this line is crucial for achieving higher price targets, including Capellini’s projection of $0.47.
As of the latest update, DOGE is trading at $0.16816.
