Dogecoin eyes 30% gain as market ‘prices in’ potential Trump victory
2024.11.05 13:16
Dogecoin (DOGE) is one of the top-performing crypto assets, with an 12% rise over the past 24 hours. The memecoin has gained positive sentiment as the US presidential election results edge closer, with the markets largely anticipating a Republican party victory.
In Q4, Dogecoin is up 65% since Oct. 1, and if Donald Trump is elected as the 47th US president, the crypto asset might exhibit another 30% rise within hours.
DOGE is “strategically positioned” amid US election results
Master Kenobi, an independent crypto analyst, mentioned that with respect to the US presidential elections, DOGE remains the most “strategically positioned” cryptocurrency.
The trader highlighted a long-term weekly chart showing Dogecoin oscillating between the bands of an ascending channel since the beginning of 2017. Dogecoin’s price has repeatedly bottomed near the undervalued region (blue line) post-BTC halving, followed by a parabolic rally to the other end of the channel or the overvalued region (red line).
Dogecoin 1-week analysis since 2017 by Master Kenobi. Source: X.com
Based on the above analysis, Dogecoin’s long-term target is around $11 in 2025, representing a 6,447% return on investment (ROI) from its current value.
It is important to note that despite historically repetitive price action, the target above is largely debatable.
Related: Why is Dogecoin price up today?
New DOGE addresses spike by 100%
Elon Musk’s personal affiliation with DOGE is also well-documented, and it was further amplified after the Tesla CEO proposed establishing a “Department of Government Efficiency,” to reduce government bloat and save taxpayers money. The agency initials form D.O.G.E, which replicates the crypto asset’s ticker.
This has potentially led to improving onchain metrics, with data from IntoTheBlock indicating a 100% increase in new DOGE addresses, rising close to 48,000 toward the end of October.
Dogecoin new addresses. Source: X.com
The rise in new addresses is likely due to new investors allocating their funds toward DOGE in the lead-up to the US election results.
Dogecoin has been largely susceptive to these types of positive catalysts, and a victory for Trump triggers a domino effect, which benefits Musk’s position and potentially leads to a short-term DOGE rally.
From a technical perspective, DOGE’s daily chart is already beginning to “price in” a Trump victory. The memecoin outperformed Bitcoin (BTC) and Ether (ETH) in November and is currently under its overhead resistance range.
Dogecoin 1-day chart. Source: TradingView
A daily close above $0.174 (the upper limit of resistance) will clear DOGE’s path to a 35% hike toward $0.23, which is near its yearly high.
Meanwhile, Mikybull Crypto, a trader and economist, mentioned that Dogecoin is about to complete a golden cross on the weekly chart for the first time since 2020.
A golden cross is considered a bullish signal. As observed in the chart, a similar signal in November 2020, led to a 20,000% ROI within May 2021, where Dogecoin reached an all-time high of $0.74.
Dogecoin golden cross analysis by Mikybull. Source: X.com
Related: Dogecoin’s breakout from 3-year channel signals 500% rally potential in 2025
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
