Dogecoin's impressive performance in October: U.S. election, Musk's assistance.
Dogecoin ($DOGE) performed well in October, with a cumulative increase of over 75%, briefly reaching a high of $0.172, setting a new high since May 2024, mainly influenced by Tesla CEO Elon Musk.
According to a report by Cointelegraph, during Trump's New York campaign rally on October 27, Musk discussed the Department of Government Efficiency plan, which aims to save taxpayers $2 trillion. Interestingly, the department's English abbreviation 'D.O.G.E' is identical to the token symbol of Dogecoin.
Further reading: Musk strikes again! Trump rally proposes the D.O.G.E plan, and Dogecoin surges 12%, hitting a 5-month high.
Analysts: May possibly break $1 in 2025, even reach $2.
(Cointelegraph) Financial analyst Yashu Gola pointed out that the weekly trend of Dogecoin shows that it has formed a symmetrical triangle pattern since April 2021 and has recently entered a breakout stage again.
Gola stated that in technical analysis, symmetrical triangles are usually continuation patterns that tend to break in the direction of the prior trend, with potential gains reaching the maximum distance between the upper and lower trend lines of the triangle.
He pointed out that Dogecoin broke above the upper trend line of the symmetrical triangle in October 2020, resulting in an astonishing increase of 31,375%.
From a technical perspective, there is another key indicator supporting the bullish forecast. In July of this year, the relative strength index (RSI) on Dogecoin's weekly chart rebounded from the historical support area around 46. Historical data shows that after consolidation patterns like symmetrical triangles, if the RSI rebounds at support, it usually leads to sustained upward momentum.
Gola predicts that if the breakout can be sustained, Dogecoin is expected to reach $1 at some point in 2025, with a final target price potentially reaching $2, an increase of 500% to 1,000% from the current price.
Image source: Analysis of Dogecoin's weekly trend by Cointelegraph financial analyst Yashu Gola.
Technical risk: Breaking below the trend line may lead to range-bound fluctuations.
However, Gola also reminded that if Dogecoin breaks below the upper trend line of the symmetrical triangle, it is likely to continue the range-bound trend.
Gola predicts that if Dogecoin further retraces, it may first drop to the range of $0.09 to $0.07, which coincides with the 50-week exponential moving average (EMA) and the lower trend line of the symmetrical triangle.
As of the time of writing today, Dogecoin is priced at $0.158, fluctuating near the upper trend line of the symmetrical triangle.
Trump's election may become the biggest boost.
The outcome of the U.S. election will also affect the future trend of Dogecoin. Gola believes that if Trump is successfully elected, the effect of driving up Dogecoin may be more pronounced.
Musk's 'D.O.G.E.' plan has sparked market speculation and strengthened the meme effect of Dogecoin. This situation is similar to Musk's frequent tweets related to Dogecoin during the last bull market, as well as his self-proclaimed title of 'Dogefather', leading to a cumulative surge of 64,000% in Dogecoin.
Data from the blockchain prediction market Polymarket shows that the current probability of Trump being elected is 61.4%, higher than current Vice President Kamala Harris's 38.8%. However, other mainstream polls (538, RealClearPolitics) indicate that the support between the two is only about a 1% difference, suggesting that the election situation seems quite tight.
[Disclaimer] The market has risks, and investment should be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views, or conclusions in this article are suitable for their specific situation. Invest at your own risk.
