Dogecoin price rose to six-month highs on Wednesday, riding on the market-wide momentum drawn from Donald Trump’s presidential election victory. DOGE price hit $0.219, the highest level since April 1, and was up by 12 percent on the daily chart at the time of writing. In addition, the rally drove its year-to-date gains to 114 percent, outperforming Bitcoin’s gains of 75 percent.
Elon Musk’s push for the establishment of a Department of Government Efficiency (DOGE) at the height of the US election campaigns was interpreted as insinuating that Dogecoin could have greater integration into the mainstream economy. Musk is arguably Dogecoin’s most famous supporter, and was also one of Donald Trump’s most influential supporters.
Trump, the US President-elect, is a known supporter of digital assets, and his win has struck a chord with the crypto industry. Most investors expect greater freedom in the regulatory ecosystem of cryptocurrencies, which could help promote crypto adoption and spur up prices. In his victory speech, Trump hailed Musk’s support, describing him as a “special guy” and “a super genious”.
However, it isn’t clear how Musk’s famed “Department of Government Efficiency” philosophy will fit into the whole matrix. Nonetheless, the crypto community considers the Trump win a win for crypto, and the Dogecoin community seek to get the most of this victory lap.
Dogecoin pivots at 0.187, and the upside will prevail if the meme coin’s price action stays above that level. The momentum will likelily encounter initial resistance at 0.200, but a stronger momentum could break above that level to test the second barrier at 0.220.
On the other hand, moving below 0.187 will signal control by the sellers. That could see DOGE moving lower to find the first support at 0.176. However, extended control by the sellers could break below that level and invalidate the upside narrative. Meanwhile, the decline could extend to test 0.162.
This post was last modified on Nov 06, 2024, 17:18 GMT 17:18