Recently, Dogecoin (DOGE) has performed remarkably well, with a surge of up to 16% within just 24 hours, and a significant growth of 25% over the past week. The renewed favor for Dogecoin in the market is mainly attributed to the overall recovery of the market and the growing expectations that Musk may participate in formulating crypto-friendly policies under the Trump administration.

Since Trump won the U.S. election in early November, Dogecoin's price began to soar significantly due to Musk's upcoming important role in the new government and his previous strong support for Dogecoin, leading to a rise of up to three digits within just a few weeks, peaking at nearly $0.485. However, by December, Dogecoin started to gradually lose its upward momentum, experiencing a sharp decline during the mid-month adjustment period, with its price plummeting from $0.41 to $0.26 in just a few days.

Nevertheless, after the significant drop, Dogecoin showed good resilience, quickly rebounding to $0.35. However, it failed to maintain the upward trend, fluctuating within a narrow range of $0.31 to $0.34 for several weeks. In recent days, with changes in the market situation, especially as whales accumulated large amounts of Dogecoin during the adjustment and consolidation phase, the outlook for Dogecoin has become particularly optimistic. Its value surged rapidly, not only increasing by 16% within 24 hours and breaking through the key resistance level of $0.34, but also currently well above $0.39. Weekly, the increase has reached 25%, close to $0.4.

Although Dogecoin's current upward trend is encouraging, its performance in the coming weeks remains full of variables, especially after the January 20 inauguration ceremony and as Musk's DOGE department situation becomes clearer, Dogecoin's performance is worth continuous attention.