Dogecoin extends gains as traders assess Elon Musk’s role in upcoming Trump administration
Dogecoin (DOGE) continues its impressive rally, extending gains on Monday following a 107% surge in the previous week. Now trading at $0.41 with a market cap of $60.2 billion, DOGE's performance is buoyed by the election of crypto-friendly candidate Donald Trump as U.S. president and the ongoing promotion by Elon Musk. DOGE’s open interest has reached a new all-time high of $2.26 billion, with daily trading volume hitting $13.96 billion, the highest this year.
Elon Musk's support for Dogecoin remains a key driver of its popularity. His co-founding of the "Department of Government Efficiency" (DOGE), an initiative aimed at streamlining U.S. government operations and reducing waste, has further fueled interest in the token. During a Trump rally, Musk claimed this initiative could save the U.S. $2 trillion in tax spending. The coincidence of the department's initials, DOGE, aligning with Dogecoin's ticker symbol has sparked speculation and bolstered bullish sentiment.
Technically, Dogecoin has broken above a long-standing ascending trendline on the weekly chart, which now serves as a support level. If this momentum holds, DOGE could rally an additional 21% to test its October 2021 high of $0.50. However, caution is warranted as the Relative Strength Index (RSI) currently sits at 78, signaling overbought conditions and the potential for a pullback. Still, the RSI could remain above 70 and maintain bullish momentum, allowing the ongoing rally to continue.
On-chain data supports the bullish case for Dogecoin. Coinglass data shows that DOGE’s futures open interest nearly doubled from $1.16 billion on November 5 to $2.26 billion by Monday, indicating a surge.
Additionally, DOGE’s daily trading volume soared from $1.49 billion on November 3 to $13.96 billion, reflecting increased liquidity and trader interest.
