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While the broader cryptocurrency market is seeing a slight pullback ahead of today’s US presidential election, Dogecoin (DOGE) has defied the trend by rising 10% over the past 24 hours. Over the past three days, DOGE has risen more than 20% from its local low of $0.14219 on Sunday. Analysts attribute this impressive performance to the speculation surrounding the elections and its potential impact on Dogecoin.
Why is the price of Dogecoin rising today?
Many cryptocurrency analysts have identified Dogecoin as the leading “Trump trade” in the cryptocurrency market – a proxy for betting on Donald Trump winning the presidential election. This connection stems from Elon Musk’s proposal to lead the Department of Government Efficiency (DOGE) under the Trump administration to cut government spending.
The Russian market (@runews) suggested that if Trump wins, “Elon Musk will get a role in the White House, which could make Dogecoin one of the ‘official’ cryptocurrencies.” This speculation is one of the reasons why Dogecoin is rising even when Bitcoin is facing a decline.
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Mammon (@D_DTRADING) also highlighted Dogecoin’s strong performance, arguing that Dogecoin may have become a backed bet on a Trump win. “Dogecoin is showing great relative strength and this has to do with Elon’s involvement in supporting Trump. Dogecoin may have become the leveraged bet for Trump to win. Trump Wins > Doge to the Moon?? Notice.
Miles Deutscher emphasized Dogecoin’s role as a catalyst in the cryptocurrency market: “DOGE pumps (the DOGE initiative will push DOGE + it is already showing its power as an alternative). DOGE as a meme leader will also attract attention + spin liquidity into the broader meme narrative. Think of it as the spark that ignites Fire.”
Former investment bank trader Pablo Heman (@RealPabloHeman) noted that “DOGE is the only green coin in a sea of red cryptocurrencies,” implying a correlation between Dogecoin’s performance and political developments.
he He pointed out“The polls are confusing, contradictory, and actually fake!” But the market doesn’t lie! There is a clear, late rally in DJT stock, a Trump stock, which is now creating a bullish engulfing pattern above yesterday’s red bar. (…) And also DOGE is the only green in a sea of red cryptocurrencies. So just keep in mind that Trump = DJT and Elon Musk = DOGE.
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Andrea Cappellini, founder of Freedom Trading Academy, expressed optimistic sentiments about Dogecoin’s potential, noting that a Trump and Elon win could send DOGE to $0.47. Artistic capellini analysis Highlights key Fibonacci retracement levels applied from the bottom at $0.05237 to the recent peak at $0.59546.
Notably, Dogecoin price is currently testing the resistance area below the 23.6% level at $0.21544. A break of this resistance could pave the way towards Cappellini’s target at $0.47. The Relative Strength Index, a momentum oscillator, stands at 62.72, which puts it in the upper neutral zone. This reading indicates increasing bullish momentum without yet entering the overbought zone (above 70). The current RSI level supports cautiously optimistic expectations for the continuation of the upward trend.
Furthermore, the weekly chart of Dogecoin shows a bullish pattern characterized by a series of higher lows and higher highs – a classic sign of an ongoing uptrend. However, DOGE is currently facing a downtrend line that previously served as resistance. A decisive break above this line is crucial to reach higher price targets, including Cappellini’s forecast of $0.47.
At press time, DOGE was trading at $0.16816.
Featured image created with DALL.E, a chart from TradingView.com