As Donald Trump makes a comeback to the White House, there is growing speculation about how his new administration could impact the cryptocurrency markets. With Elon Musk, a vocal supporter of cryptocurrencies and a close associate of the incoming president, Dogecoin [DOGE] might stand to benefit significantly.
This renewed connection between two of the most powerful figures globally begs the question: is Dogecoin poised for another impressive upsurge?
Anticipating a Rally for Dogecoin
With Elon Musk’s potential sway over President Trump, crypto analyst Ali Martinez suggests that Dogecoin could be on the brink of a substantial rally.
Martinez highlights that historically, when Dogecoin surpasses the 0.50 Fibonacci retracement level, it tends to continue its upward trajectory towards the 1.618 or even the 2.272 Fibonacci levels.
Citing previous bullish cycles, the analyst forecasts that Dogecoin might potentially reach values ranging from $4 to $23 if a similar bullish trend ensues.
Furthermore, Dogecoin’s price history showcases remarkable spikes and dips, often influenced by community backing and social media trends. The initial surge in 2017 coincided with the cryptocurrency boom and the rise of meme culture.
In 2021, a breakout fueled by Elon Musk’s social media presence and SNL appearance resulted in all-time highs. However, this surge was short-lived, leading Dogecoin into a consolidation phase throughout 2022 and 2023.
Presently, there is a renewed sense of positivity surrounding DOGE, partly due to Musk’s increasing political influence.
Identifying Early Indications of Momentum
Recent fluctuations in Dogecoin’s trading volume indicate shifting market dynamics that might foreshadow a potential rally.
The recent uptick correlated with rising interest as Dogecoin’s value surged from the $0.13 range to above $0.19, hinting at possible significant developments on the horizon.
Social sentiment towards DOGE has also turned more positive. Data from Santiment reveals a substantial increase in social interactions. The augmented discussions and speculations regarding Musk’s impact could further stoke interest, potentially attracting more retail and institutional investment.
Moreover, there has been a notable spike in whale transactions, especially in the last 48 hours, coinciding with the US presidential race.
These heightened large-scale transactions might signify a growing investor appetite, and if this trend persists, it could pave the way for a sustained upward momentum in Dogecoin’s value.