Recently, Dogecoin (DOGE) has performed remarkably well, with a 16% increase in just 24 hours and a significant 25% growth over the past week. The renewed interest in Dogecoin is primarily attributed to the overall recovery of the market and the increasing expectations that Elon Musk may be involved 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 due to Musk's anticipated significant role in the new government and his past strong support for Dogecoin. In just a few weeks, the price surged to a three-digit percentage increase, reaching nearly $0.485 at its peak. However, by December, Dogecoin started to lose upward momentum and experienced a significant drop during the mid-month adjustment, plummeting sharply from $0.41 to $0.26 within just a few days.

Nevertheless, after the substantial decline, Dogecoin demonstrated good resilience, quickly rebounding to $0.35. However, it failed to maintain the upward trend and fluctuated within a narrow range of $0.31 to $0.34 for several weeks. In the past few days, as the market situation changed, especially with whales accumulating large amounts of Dogecoin tokens during the adjustment and consolidation phase, the outlook for Dogecoin became exceptionally optimistic. Its value surged rapidly, not only increasing by 16% within 24 hours and breaking through the critical resistance level of $0.34, but currently, it is well above $0.39. On a weekly basis, the increase has reached 25%, approaching $0.4.

Despite the impressive price action of Dogecoin, its trajectory in the coming weeks remains uncertain, particularly after the January 20 inauguration of Trump and the clarity regarding Musk's DOGE-related activities. The performance of Dogecoin is worth continuous monitoring.