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DOGE in "strategic position" amid US election results
New DOGE addresses increase by 100%
Dogecoin (DOGE) is one of the best performing crypto assets with a 12% increase in the last 24 hours. The memecoin gained positive sentiment as the US presidential election results approached, with markets largely expecting a victory for the Republican party.
Dogecoin is up 65% since October 1st in Q4, and if Donald Trump is elected as the 47th president of the United States, the crypto asset could see another 30% increase within hours.
DOGE in "strategic position" amid US election results
Independent crypto analyst Master Kenobi noted that DOGE is still the “best strategically positioned” cryptocurrency in terms of the US presidential election.
The trader noted a long-term weekly chart that shows Dogecoin fluctuating between the bands of an ascending channel since early 2017. Following the BTC halving, Dogecoin’s price repeatedly bottomed out near the undervalued zone (blue line) and then followed a parabolic rally to the other end of the channel or overvalued territory (red line).
Dogecoin 1 week analysis by Master Kenobi since 2017. Source: X.com
Based on the above analysis, Dogecoin’s long-term target is around $11 in 2025, implying a 6,447% return on investment (ROI) from its current value.
It is important to note that despite historically recurring price movements, the above target is largely debatable.
Related: Why is Dogecoin price rising today?
New DOGE addresses increase by 100%
Elon Musk’s personal connection to DOGE is also well-documented, and was further strengthened after the Tesla CEO proposed creating a “Department of Government Efficiency” to reduce government bloat and save taxpayers money. The agency’s initials form the symbol for the crypto asset, DOGE.
This has potentially led to improved on-chain metrics, with data from IntoTheBlock showing a 100% increase in new DOGE addresses, approaching 48,000 by the end of October.
Dogecoin new addresses. Source: X.com
The increase in the number of new addresses is thought to be due to new investors transferring their funds to DOGE ahead of the US election results.
Dogecoin is highly susceptible to such positive catalysts, and a Trump victory would trigger a domino effect that benefits Musk’s position and potentially leads to a short-term DOGE rally.
From a technical perspective, DOGE’s daily chart has already started to “price in” a Trump victory. The memecoin outperformed Bitcoin (BTC) and Ether (ETH) in November and is currently below the top resistance range.
Dogecoin 1-day chart. Source: TradingView
A daily close above the $0.174 level (the upper boundary of the resistance) would open the way for a 35% increase towards DOGE’s yearly high of $0.23, which is close to its yearly high.
Meanwhile, trader and economist Mikybull Crypto noted that Dogecoin is about to complete a golden cross on the weekly chart for the first time since 2020.
A golden cross is considered a bullish signal. As seen on the chart, a similar signal in November 2020 led to a 20,000% ROI in May 2021, when Dogecoin reached an all-time high of $0.74.
