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Elon Musk’s favorite cryptocurrency, Dogecoin (DOGE), may be on the verge of a major parabolic rally following the recent victory of US Republican presidential candidate Donald Trump.
Is Trump’s Victory Catapult Dogecoin to $23?
Earlier today, Trump was elected the 47th president of the United States in a landslide victory over Democratic presidential candidate Kamala Harris. After Trump’s victory, Bitcoin (BTC) reached an all-time high (ATH) of $73,737, reaching unprecedented levels.
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While BTC is trading at new highs, the outcome of Trump’s victory is expected to have an impact on other digital currencies, especially Musk’s preferred Dogecoin.
In accordance with Analysis of crypto technical analyst Ali Martinez, DOGE is approaching the breakthrough at the 0.50 Fibonacci retracement level, which is likely to lead. to rally up to 1.618 or even 2.272 Fibonacci expansion levels.
For the uninitiated, Fibonacci extensions are used in technical analysis to set future price targets by identifying key support and resistance levels. Historically, the DOGE has often aligned with Fibonacci expansion levels during bull runs.
According to Martinez, if DOGE follows a similar trajectory in the next bull run, it could rise anywhere between $4 and $23.
The chart below shows that the next important Fibonacci extension level for DOGE is 1.00, which puts the price just above $0.739, beyond its current ATH of $0.7316, set for May 2021.
Currently, DOGE is trading at $0.202, having risen by an impressive 18% in the past 24 hours, largely fueled by Trump’s victory. If DOGE reaches the Fibonacci extension level of 1.618, its price could jump to $3.94 – more than five times its current ATH.
Under the most favorable conditions, DOGE could even reach the 2.272 Fibonacci extension level, pushing its price to $23.25 – almost a 100x increase from its current price.
Elon Musk’s Potential Impact on Trump’s Cabinet
While Musk’s potential role in Trump’s cabinet remains unclear, the world’s richest man is likely to have a major impact on Trump’s term as president.
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Musk has often voiced his support for DOGE on the X social media platform, which has often resulted in short-term price increases driven by investor interest.
With Musk’s possible influence on the new administration, it wouldn’t be surprising to see policy decisions that could indirectly benefit cryptocurrencies like Dogecoin.
The data shows that DOGE whales may expect a significant price increase, as the latest auction shows the collection of more than 2.1 billion tokens last week.
That said, DOGE investors should be careful as the token has already experienced a lot of run-up recently and may have bright signals.
At press time, BTC is trading at $74,249, up 8% in the last 24 hours.
Featured image from Unsplash, Charts from X and Tradingview.com
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