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While the broader crypto market is experiencing a slight decline ahead of today’s US presidential election, Dogecoin (DOGE) has bucked the trend by surging 10% in the past 24 hours. In the past three days, DOGE has rallied more than 20% from its local low of $0.14219 on Sunday. Analysts attribute this dramatic performance to speculation surrounding the election and its potential impact on Dogecoin.
Why Is Dogecoin Price Rising Today?
Several crypto analysts have identified Dogecoin as the leading “Trump trade” within the crypto market—a proxy for betting on Donald Trump’s victory in the presidential election. This organization stems from Elon Musk’s proposal to lead the “Department of Government Operations” (DOGE) under the Trump administration to reduce government spending.
Russian Market (@runews) suggested that if Trump wins, “Elon Musk will take part in the White House, possibly making Dogecoin one of the ‘official’ cryptocurrencies.” This speculation is considered to be one reason why Dogecoin is rallying as Bitcoin faces a decline.
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Mammon (@D_DTRADING) also highlighted Dogecoin’s strong performance, arguing that Dogecoin could be a profitable bet for a Trump win. “Dogecoin is showing great strength and this has to do with Elon’s involvement in supporting Trump. There Dogecoin could be a profitable bet for a Trump win. Trump wins > Doge on the moon??” he commented.
Miles Deutscher emphasized Dogecoin’s role as a catalyst in the crypto market: “DOGE pumps (DOGE’s move will further DOGE + already showing strength as a proxy). DOGE as a meme leader will also drive attention + circulation to the broader meme narrative. Think of it as a spark that ignites a fire. “
Former investment bank trader Pablo Heman (@RealPabloHeman) noted that “DOGE is the only green in a sea of red cryptos,” implying a correlation between Dogecoin’s performance and political developments.
He pointed out that: “Polls are confusing and contradictory, when in fact they are OPINIONS! But the market doesn’t lie! There is a clear, late rise in DJT Trump stock, now forming a Bullish Engulfing Pattern above yesterday’s red bar. […] And again DOGE is the only green in a sea of red cryptos. So always remember Trump = DJT and Elon Musk = DOGE.
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Andrea Capellini, the founder of the Freedom Trading Academy, expressed strong feelings about the power of Dogecoin, suggesting that the victory of Trump and Elon could send DOGE to $ 0.47. Capellini’s technical analysis highlights key Fibonacci retracement levels used from a low of $0.05237 to a recent high of $0.59546.
Notably, the price of Dogecoin is currently testing the resistance area below the 23.6% level at $0.21544. A break above this resistance could pave the way towards Capellini’s target of $0.47. The Relative Strength Index, a dynamic oscillator, stands at 62.72, placing it in the middle and upper range. This reading shows growing bullish momentum without entering overbought territory (above 70). The current RSI level supports an optimistic view to note the continuation of the upward trend.
In addition, the weekly chart of Dogecoin shows a bullish pattern characterized by a series of high lows and high highs – a classic sign of a continued rise. However, DOGE is currently facing a downtrend line that has served as resistance. A significant break above this line is essential to reach a higher price, including Capellini’s $0.47 projection.
At press time, DOGE traded at $0.16816.
The featured image was created with DALL.E, a chart from TradingView.com