Market Analysis
Dogecoin (DOGE) has gained significant momentum, rising 12% in the last 24 hours and becoming one of the top-performing crypto assets. The memecoin has been buoyed by growing anticipation of a Republican victory in the upcoming U.S. presidential election, adding to bullish sentiment surrounding the asset.
Since the start of Q4, Dogecoin has surged 65%, with analysts suggesting that a Trump victory could trigger an additional 30% rally.
DOGE Positioned for Election-Driven Rally
Independent crypto analyst "Master Kenobi" pointed to Dogecoin's advantageous position as the U.S. election results approach. According to Kenobi, DOGE has consistently oscillated between key price bands on a weekly chart since 2017. Historically, Dogecoin has bottomed near a support region (blue line) post-Bitcoin halving events, which often precedes parabolic rallies toward the upper channel (red line).
Kenobi's long-term target for Dogecoin suggests a price of $11 by 2025, translating to a potential 6,447% return from its current level. However, this target remains speculative, hinging on favorable conditions and market behavior.
Why Dogecoin Is Up Today
**New DOGE Addresses Spike by 100%**
Dogecoin has also seen a 100% surge in new wallet addresses, rising close to 48,000 as of late October, based on data from IntoTheBlock. This uptick in new addresses hints at increased investor interest, likely tied to the election's influence on the crypto market.
Elon Musk's connection to Dogecoin continues to bolster its image. His recent call for a “Department of Government Efficiency” (D.O.G.E.) has sparked renewed interest, as many perceive it as an indirect endorsement of Dogecoin. Musk's involvement and social media presence have historically driven positive momentum for DOGE, making it highly reactive to such public statements.
**Technical Outlook**
Dogecoin’s daily chart reveals that the memecoin may be “pricing in” a Trump victory. DOGE has recently outperformed both Bitcoin (BTC) and Ether (ETH), although it remains just below a key resistance level of $0.174. A daily close above this resistance could pave the way for a potential 35% increase, targeting the $0.23 range near its yearly high.
Moreover, according to analyst Mikybull Crypto, Dogecoin is nearing a "golden cross" on its weekly chart—a pattern where a shorter moving average crosses above a longer moving average, traditionally signaling a bullish trend. The last time Dogecoin experienced this was in November 2020, which led to a 20,000% surge by May 2021 when DOGE reached an all-time high of $0.74.
In summary, the convergence of election-driven hype, favorable technical indicators, and Elon Musk's influence could drive Dogecoin to new heights in the near term.