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Elon Musk’s favorite cryptocurrency, Dogecoin (DOGE), may be on the verge of a massive parabolic rally following the recent victory of US Republican presidential candidate Donald Trump.
Could a Trump win push Dogecoin to $23?
Earlier today, Trump was elected the forty-seventh president of the United States with a convincing victory over Democratic presidential candidate Kamala Harris. Following Trump’s victory, Bitcoin (BTC) surpassed its all-time high (ATH) of $73,737, reaching unprecedented levels.
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While BTC is trading at new highs, the ripple effect of Trump’s victory is expected to impact other cryptocurrencies, especially Musk’s favorite coin, Dogecoin.
according to According to the analysis of cryptocurrency technical analyst Ali Martinez, DOGE is approaching the level breakthrough At 0.50 Fibonacci retracement level, it is likely to lead To rise to the 1.618 level or even the 2.272 Fibonacci extension levels.
For starters, Fibonacci extensions are used in technical analysis to forecast potential future price targets by identifying key support and resistance levels. Historically, DOGE has frequently been in line with Fibonacci extension levels during bullish periods.
According to Martinez, if DOGE follows a similar path in the next bullish wave, it could rise to between $4 and $23.
The chart below shows that the next important Fibonacci extension level for DOGE is 1.00, which puts its price just above $0.739, beyond the current ATH of $0.7316, set in May 2021.
Currently, DOGE is trading at $0.202, having risen 18% over the past 24 hours, largely driven by Trump’s win. If DOGE reaches the 1.618 Fibonacci extension level, its price could jump to $3.94 – more than five times its current ATH price.
Under very bullish conditions, DOGE could reach the 2.272 Fibonacci extension level, pushing its price to $23.25 – nearly 100 times its current value.
Elon Musk’s potential influence in Trump’s cabinet
While Musk’s potential role in Trump’s cabinet remains unclear, the world’s richest man will likely have a significant impact during Trump’s term as president.
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Musk has repeatedly expressed his support for DOGE on the social media platform
With Musk’s potential influence in the new administration, it would not be surprising to see policy decisions that could indirectly benefit cryptocurrencies like Dogecoin.
Data shows that DOGE whales may be anticipating a significant price rise, with recent transactions indicating the accumulation of more than 2.1 billion tokens over the past week.
However, DOGE investors should be careful since the token has already seen a significant rally recently and may be issuing overbought signals.
At press time, Bitcoin is trading at $74,249, up 8% in the past 24 hours.
Featured image from Unsplash, charts from X and Tradingview.com
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