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While the broader crypto market is experiencing a slight pullback ahead of today’s US presidential election, Dogecoin (DOGE) has defied the trend by rising 10% over the past 24 hours. Over the past three days, DOGE has risen more than 20% from Sunday’s local low of $0.14219. Analysts attribute this remarkable performance to speculation surrounding the election and its potential impact on Dogecoin.
Why is the Dogecoin price rising today?
Several crypto analysts have identified Dogecoin as the leading “Trump trade” within the crypto market – a proxy for betting on a Donald Trump victory in the presidential election. This association stems from Elon Musk’s proposal to run a “Department of Government Efficiency” (DOGE) under the Trump administration to reduce government spending.
The Russian market (@runews) suggested that if Trump wins, “Elon Musk will get a role in the White House, potentially making Dogecoin one of the ‘official’ cryptocurrencies.” This speculation is considered one of the reasons why Dogecoin is recovering even as Bitcoin faces a decline.
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Mammon (@D_DTRADING) also highlighted Dogecoin’s strong performance, arguing that Dogecoin may have become a leveraged bet for a Trump victory. “Dogecoin is showing great relative strength and I believe this has to do with Elon’s involvement in supporting Trump. In which Dogecoin could have become the leveraged bet for a Trump victory. Trump wins > Doge to the moon?? He noted.
Miles Deutscher emphasized the role of Dogecoin as a catalyst in the crypto market: “DOGE pumps (DOGE initiative will propel DOGE + it is already showing strength as a proxy). DOGE, as a meme leader, will also bring attention and liquidity rotation to the broader meme story. Think of it as the spark that lights the fire.”
Former investment bank trader Pablo Heman (@RealPabloHeman) noted that “DOGE is the only green one in a sea of red cryptos,” implying a link between Dogecoin’s performance and political developments.
He pointed out: “The polls are confusing and contradictory, and basically they are FAKE! But the market doesn’t lie! There is a clear, late rise in DJT Trump stock, which is now making a Bullish Engulfing Pattern above yesterday’s red bar. […] And DOGE is also the only green one in a sea of red cryptos. So keep in mind that Trump = DJT and Elon Musk = DOGE.”
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Andrea Capellini, founder of the Freedom Trading Academy, expressed positive sentiments about Dogecoin’s potential and suggested that a Trump and Elon win could send DOGE to $0.47. Capellini is technical analysis highlights the key Fibonacci retracement levels, applied from the low at $0.05237 to the recent peak at $0.59546.
Notably, Dogecoin’s price is currently testing the resistance zone, just below the 23.6% level at $0.21544. Breaking this resistance could pave the way to Capellini’s $0.47 target. The Relative Strength Index, a momentum oscillator, is at 62.72, putting it in the upper neutral zone. This value indicates growing bullish momentum without yet reaching the overbought area (above 70). The current RSI level supports cautiously optimistic prospects for the continuation of the uptrend.
Furthermore, the weekly chart for Dogecoin shows a bullish pattern characterized by a series of higher lows and higher highs – a classic sign of an ongoing uptrend. However, DOGE is currently facing a downtrend line that previously acted as resistance. A decisive break above this line is crucial to achieve higher price targets, including Capellini’s projection of $0.47.
At the time of writing, DOGE was trading at $0.16816.
Featured image created with DALL.E, chart from TradingView.com