At the time of writing, Dogecoin (DOGE) is trading at $0.421, with daily gains of 12.9%, weekly gains of 114.6%, and an impressive monthly gain of 263%.
The memecoin's price has surpassed key levels, its capitalization is now the sixth largest in the crypto market and it has accumulated a fortune of 62 billion dollars .
The reasons behind this huge rally can be found not only in the current momentum that the general market is experiencing after Donald Trump's victory, but also in Elon Musk's initiative in creating the DOGE government department or the Department of Government Efficiency.
Since the presidential campaign and amidst his support for Trump, Musk promoted the creation of such a government entity. Recently, Donald Trump, who is the president-elect, has confirmed the creation of DOGE and its leadership by Musk.
All actions of the Department of Government Efficiency will be posted online for maximum transparency.
Anytime the public thinks we are cutting something important or not cutting something wasteful, just let us know!
“All actions of the Department of Government Efficiency will be published online for maximum transparency. Whenever the public thinks we are cutting something important or not cutting something that is wasteful, just let us know!”
According to Santiment data, sharks and whales are the driving forces behind this rally, and the rise coincides with Donald Trump’s victory and his recent statements about DOGE. This indicates that while the Dogecoin cryptocurrency has never been directly referenced, investors do see the department’s name as a subtle reference to DOGE.
In the final segment of this analysis we will once again address the topic of DOGE, for now let's focus on technical analysis.
DOGE Chart Analysis: Key Levels
On Tuesday, DOGE price reached a three-year high by climbing to $0.4355. But it was strongly rejected from that level and now the bulls are struggling to keep the price above $0.40.
If traders manage to hold the current levels, they could push DOGE price to face resistance at $0.52, the break of which would confirm that there is potential in the token's current price that could take it to its ATH.
The current rise has broken through all the key resistances we mentioned in previous analyses and the price is now approaching the all-time highs of $0.72 from May 2021.
Traders should be aware of the rapid price growth, as it could push the token into overbought territory and lead to corrections. But for this, we can look at the support levels.
First, there is the support at $0.383 or the 20-period EMA from where the bulls have shown that they are in control. Then there is a double bottom at $0.35, where the price bounced strongly.
Finally, we can look at the EMA 200 or $0.32, whose break downwards could indicate the end of the current bullish momentum.
Finally, the RSI at 61.9 points and in the current context would indicate that the price is under bullish control, so short-term rallies are feasible.
Elon Musk will lead DOGE and reduce bureaucratic waste
As we said, Donald Trump has already announced that Elon Musk and Vivek Ramaswamy will lead the so-called Department of Government Efficiency (DOGE) to combat government bureaucracy.
In a post on Truth Social, the president-elect not only confirmed Musk's leadership role, but also promised that Musk would lead the "Save America" movement.
Musk's work would thus end with a "smaller government, with more efficiency and less bureaucracy" on July 4 in 2026, according to Trump.
These announcements come as the cryptocurrency market surpasses $3 trillion in market capitalization and DOGE is on track to become the fifth-largest coin by market cap.
