Dogecoin Soars 10%: Is Trump the Driving Force Behind DOGE’s Rally?

Dogecoin’s Unexpected Surge: A Trump Effect?

While the broader cryptocurrency market experiences a slight dip ahead of the US presidential election, Dogecoin (DOGE) has bucked the trend, soaring 10% in the last 24 hours. This rally comes after a three-day surge of over 20% from its recent low of $0.14219 on Sunday. Analysts are attributing this remarkable performance to speculation surrounding the election and its potential impact on Dogecoin.

Dogecoin: The Leading "Trump Trade"?

Several cryptocurrency analysts have labeled Dogecoin as the leading "Trump trade" within the crypto market—a proxy for betting on a Donald Trump victory in the presidential election. This connection stems from Elon Musk’s proposal to lead a "Department of Government Efficiency" (D.O.G.E.) under a Trump administration, aimed at reducing government spending.

Russian Market (@runews) suggested that a Trump win could see Elon Musk taking a role at the White House, potentially making Dogecoin one of the "official" cryptocurrencies. This speculation is considered a key factor driving Dogecoin’s rise, even as Bitcoin faces a decline.

Leveraged Bet on Trump?

Mammon (@D_DTRADING) reinforced this perspective, arguing that Dogecoin might have become a leveraged bet for a Trump victory. He stated, "Dogecoin showing great relative strength and imo this has to do with Elon’s involvement in supporting Trump. In which Dogecoin might have become the leveraged bet for a Trump win. Trump win > Doge to the moon??"

Dogecoin as a Catalyst

Miles Deutscher highlighted Dogecoin’s role as a catalyst in the cryptocurrency market, stating, "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 + liquidity rotation to the broader meme narrative. Think of it as the spark that lights the fire."

DOGE: The Only Green in a Sea of Red

Former investment bank trader Pablo Heman (@RealPabloHeman) observed, "DOGE is the only green in a sea of red cryptos," highlighting a possible correlation between Dogecoin’s performance and political developments. He pointed out, "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 making a Bullish Engulfing Pattern over yesterday’s red bar. […] And also DOGE is the only green in a sea of red cryptos. So just keep in mind Trump = DJT and Elon Musk = DOGE."

Dogecoin’s Potential: A Bullish Outlook

Andrea Capellini, founder of Freedom Trading Academy, expressed bullish sentiments on Dogecoin’s potential, suggesting that a Trump and Elon win could send DOGE to $0.47. Capellini’s technical analysis points to key Fibonacci retracement levels applied from the low at $0.05237 to the recent peak at $0.59546. Notably, Dogecoin’s price is currently testing the resistance zone just beneath the 23.6% level at $0.21544. Breaking through this resistance could pave the way 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 yet entering overbought territory (above 70). The current RSI level supports a cautiously optimistic outlook for the continuation of the upward trend.

Moreover, the weekly chart for Dogecoin exhibits a bullish pattern characterized by a series of higher lows and higher highs—a classic sign of a sustained uptrend. However, DOGE is currently facing a downtrend line that has previously acted as resistance. A decisive breakout above this line is crucial to reach higher price targets, including Capellini’s projection of $0.47.

At press time, DOGE traded at $0.16816.

Featured image created with DALL.E, chart from TradingView.com