NAIROBI (CoinChapter.com) — On Oct. 18, Dogecoin (DOGE) surged after Elon Musk, Tesla CEO and owner of X, endorsed Donald Trump at a town hall event in Pennsylvania. Musk also proposed a new government agency called the “Department of Government Efficiency” (D.O.G.E.), referencing the popular meme cryptocurrency. His remarks triggered a price spike in Dogecoin, with the meme coin jumping by more than 10%.
Musk established a political action committee (PAC) named America PAC, into which he has poured over $70 million to support Trump and other Republican candidates ahead of the November elections.
Musk Proposes ‘D.O.G.E.’ Department at Rally In Philadelphia. Source: YouTube
At the event, held in suburban Philadelphia, Musk emphasized Pennsylvania’s importance in the upcoming presidential election between Trump and Kamala Harris. He also laid out his vision for government reforms, focusing on border security, public safety, and curbing inflation.
Dogecoin (DOGE) Rally Backed by Strong On-Chain Metrics
Musk’s comments had an immediate impact on Dogecoin (DOGE) price, which rose 10.36% to $0.1352. The dog-themed meme token has become one of the top-performing major crypto assets this week, rallying 25% over the past seven days.
DOGE/USD 1- day price chart. Source: CoinMarketCap
DOGE-denoted open interest – or the number of unsettled futures bets – spiked to over 5 billion tokens in a sign of forthcoming volatility. Coinglass data shows that open interest (OI) in Dogecoin futures surged from $593.66 million on Oct. 16 to $925.53 million on Oct. 18, reflecting a bullish trend.
DOGE’s long-to-short ratio. Source: Coinglass
Additionally, Dogecoin’s long-to-short ratio stands at 1.01, the highest in a month. This shows more traders expect the price to rise. Trading volume also spiked from $573.27 million on Oct. 13 to $3.37 billion on Oct. 18, highlighting increasing market interest.
Analyst Predicts Dogecoin Could Hit $10 in New Parabolic Run
Crypto analyst Dima James Potts suggested Dogecoin (DOGE) could be on the verge of another parabolic rally, similar to its meteoric rise in 2021. Potts highlighted that Dogecoin’s current price pattern mirrors its 2021 breakout, when it surged over 16,000%.
Dima Potts Forecasts Optimistic $10 Dogecoin Price Point. Source: X
Potts highlighted a three-year cycle in Dogecoin’s history, where the price increased 1.5 times in 2016 and 2.5 times in 2020. Consequently, he predicts Dogecoin could reach $0.31 by the end of 2024, tripling from its starting price of $0.09051.
For 2025, Potts foresees even larger gains, similar to Dogecoin’s 9,000% rise in 2017 and 18,000% in 2021. He believes the coin could hit $10 if this trend holds.
Dogecoin Could Surge 30x Soon. Credit: Bluntz/X
Moreover, Bluntz, another crypto analyst, supported this view, suggesting Dogecoin could rally by 30x within weeks if market conditions align.
Above all, as traders and investors watch closely, the combination of Musk’s influence and positive on-chain data suggests Dogecoin may have further room to run in the coming weeks.
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