TLDR
- Dogecoin surged following Trump’s election and announcement of DOGE agency
- Cup and handle pattern breakout suggests potential target of $1.385
- Historical analysis shows previous bull runs had 40-84% corrections
- Elon Musk’s involvement through co-leading new department boosted price
- Current technical analysis indicates possible 45% rally to $0.56 if $0.35 support holds
Dogecoin prices have doubled since election day, reaching a three-year high as the cryptocurrency market responds to Donald Trump’s victory and the subsequent announcement of a new government agency sharing the meme coin’s name.
The price surge began immediately following the election results, with Dogecoin trading at $0.39 as of Thursday afternoon.
This represents a more than 100% increase from pre-election levels, making it one of the best-performing digital assets during this period.
The rally gained additional momentum when the president-elect announced the creation of a new agency bearing the acronym DOGE. This department, which aims to streamline government operations and reduce bureaucratic red tape, will be co-led by Tesla CEO and prominent Trump supporter Elon Musk.
Musk’s involvement has particularly energized the Dogecoin community. Throughout Wednesday, he posted multiple references to the DOGE department on his social media platform X, incorporating the cryptocurrency’s iconic Shiba Inu dog mascot. These posts coincided with increased trading activity and price appreciation.
Yes 🔧 https://t.co/ks64wN6lw9
— Elon Musk (@elonmusk) November 14, 2024
Trading volume has reached levels not seen since early March, with the weekly volume hitting new peaks. This surge in activity suggests strong retail investor participation and renewed speculative interest in the cryptocurrency.
Technical analysis of Dogecoin’s chart reveals a classic cup and handle pattern that formed between November 2021 and October 2023. The price recently broke out above the pattern’s upper trendline on heavy volume, suggesting potential for continued upward movement.
The measuring principle, a technical analysis tool used to project price targets, indicates a possible move to $1.385. This calculation is based on the percentage change of the cup formation added to the breakout point.
However, reaching this target would require Dogecoin’s market capitalization to grow from its current $58 billion to approximately $203 billion.
Several key support levels have emerged on the price chart. The first notable support zone sits at $0.35, corresponding to the mid-August 2021 peak. Below that, $0.285 marks another potential support area near the October 2021 swing high. The $0.22 level represents the final major support, coinciding with the cup and handle pattern’s upper trendline.
Historical analysis of previous Dogecoin bull cycles suggests caution may be warranted. During the 2017 bull run, which saw a 9,470% price increase, Dogecoin experienced two major corrections of 40% and 84%. Similarly, the 2021 rally of over 30,700% included pullbacks of 46% and 53%.
Retail investor sentiment appears strongly favorable toward Dogecoin. A recent poll showed 83% of participants preferred investing $100 in Dogecoin over Bitcoin, suggesting retail traders view the meme coin as a more accessible investment opportunity with greater potential upside.
The RSI (Relative Strength Index) currently reads above 80, indicating overbought conditions. While this confirms the strong bullish momentum, it also suggests the possibility of near-term price corrections.
A bull flag pattern has formed on shorter timeframes, suggesting a potential 45% rally toward $0.56 if the $0.35 support level holds. This technical formation often precedes continuation moves in the direction of the primary trend.
Market observers note that Dogecoin’s lower price point compared to Bitcoin makes it attractive to retail investors seeking exposure to cryptocurrency markets. The involvement of high-profile figures like Elon Musk adds to its appeal among mainstream investors.
The cryptocurrency’s trading volume has maintained steady growth, with small wallet addresses holding under 100,000 DOGE showing a marked increase. This indicates growing participation from retail investors rather than larger institutional players.
Today’s price stands at $0.39, unchanged from yesterday’s closing price, as traders digest recent gains and monitor key support levels.
