- Dogecoin jumps over 75% in October, reaching its highest price since May 2024
- Technical analysis points to possible continuation toward $1 or higher in 2025
- Musk-Trump connection and campaign rally boost DOGE’s market sentiment further
Dogecoin’s price surged by more than 75% in October, closing the month at $0.172, marking its highest point since May 2024. The price rally follows notable market excitement, partly driven by Elon Musk’s appearance at a campaign rally for Donald Trump on October 27. Musk’s discussion of cost-saving measures linked to the Department of Government Efficiency (sharing the DOGE acronym) added an unexpected layer of interest.
Source: PBS News Hour on YouTube
Technical Patterns Indicate Upward Potential
Dogecoin’s recent performance reflects a breakout from a symmetrical triangle pattern that has persisted since April 2021. Technical analysts observe that this type of chart pattern often signals a strong continuation in the direction of the prior trend. In Dogecoin’s case, its breakout aligns with a historical pattern seen between 2020 and 2021, when DOGE surged by over 31,000% after moving past similar resistance levels.
The current breakout points to a potential price target as high as $2 in the coming years, with a $1 milestone anticipated by 2025 if the upward momentum holds. Additionally, Dogecoin’s weekly relative strength index (RSI) bounced from a support zone around 46 in July, echoing past conditions that preceded significant price rallies.
Influence of Political and Market Factors
The connection between Musk and Trump has drawn attention due to their shared support base, often overlapping with retail investors who have shown enthusiasm for Dogecoin. Musk’s potential involvement with Trump’s administration, should Trump win the 2024 election, could amplify Dogecoin’s market momentum. Trump currently holds a 64.1% chance of winning, according to Polymarket data.
However, should Dogecoin fail to sustain its breakout, analysts warn of a potential retracement toward the $0.09 to $0.07 range, aligning with its 50-week EMA and lower triangle boundary. This scenario would temper bullish expectations, although interest remains strong due to Dogecoin’s resilience and Musk’s past influence, including his self-proclaimed role as the “Dogefather,” which contributed to DOGE’s explosive growth during the last major bull cycle.
