- Dogecoin (DOGE) has rallied by 12% over the past 24 hours, with traders anticipating a potential Trump victory in the US presidential election and further support from Elon Musk.
- Data suggests that if Trump wins, DOGE could see a 30% gain, potentially reaching new highs for 2024.
- Technical analysis indicates that DOGE is poised for a bullish move, with the possibility of a golden cross formation on the weekly chart, which previously led to a 20,000% rally in 2021.
The memecoin Dogecoin (DOGE) has seen strong gains recently as markets appear to be anticipating a victory for Donald Trump and the Republican party in the 2024 US presidential election. DOGE is up 65% in Q4 2022 alone, and some analysts believe the asset could surge another 30% if Trump wins the presidency again.
Dogecoin Strategically Positioned Amid Election
Independent analyst Master Kenobi notes that DOGE is uniquely positioned among cryptocurrencies when it comes to the election outcome. Looking at DOGE’s long-term weekly chart, the asset has oscillated between the bands of an ascending channel since early 2017. Dogecoin’s price has repeatedly bottomed near the channel’s undervalued zone after each Bitcoin halving, followed by a parabolic surge towards overvalued territory. Based on this, Kenobi sees DOGE potentially reaching $1.11 by 2025, representing a 6,447% ROI from current levels. However, this long-term target is speculative.
New Dogecoin Addresses Spike 100%
On-chain data shows Dogecoin is seeing renewed interest ahead of the election. According to IntoTheBlock, new DOGE addresses rose by 100% in late October, nearing 48,000. This rise likely reflects new investors allocating to DOGE based on election catalysts.
Elon Musk’s high-profile affiliation with DOGE is also well known. Musk recently proposed a “Department of Government Efficiency” agency, whose initials “DOGE” match the memecoin’s ticker. A Trump victory could strengthen Musk’s position and power another near-term DOGE rally.
Technicals Suggest Further Upside
DOGE is already beginning to price in a Trump win based on its recent technical strength. The memecoin has outperformed Bitcoin and Ether over November and is currently testing its overhead resistance zone. A daily close above $0.174, the upper limit of resistance, would open the path for DOGE to surge 35% towards $0.23 – near its 2022 high.
Additionally, analyst Mikybull Crypto notes DOGE is on the cusp of a golden cross on its weekly chart for the first time since 2020. Historically, these crosses have preceded massive rallies. The last weekly golden cross in late 2020 led to a 20,000% DOGE price surge within 6 months. This chart pattern signals the memecoin could be gearing up for more upside.
Conclusion
In summary, Dogecoin is flashing several bullish technical and on-chain signals as markets appear to be anticipating a Republican victory. While nothing is certain, DOGE looks poised to continue its strong run if the election breaks as expected. However, crypto markets remain volatile, so risks abound.
