Dogecoin was initially an inside joke among cryptocurrency enthusiasts, but soon became one of the top 10 digital assets by market capitalization. Today it is worth $55.31 billion at current prices, and its value has been slowly increasing recently. Based on technical and market charts, popular meme coin has broken out of the descending triangle, which suggests that the stock has an upward trajectory ahead.
Dogecoin has been available since Wednesday listed at $0.3796 — and saw a solid 113% gain last week, with analysts expecting a price of $0.70 in the brief term and $3.00 in the long term. As with Bitcoin, DOGE’s recent price action is driven by several factors, including Elon Musk’s growing influence in the incoming Trump administration.
Source: Bitstamp
The long history of Musk and Dogecoin
Although Dogecoin is not Elon Musk’s brainchild, the Twitter/X owner has a long history with the eminent meme coin. Musk first mentioned Dogecoin on April 2, 2019, writing that it was his favorite cryptocurrency and adding that it was pretty nippy. After sharing his post, the coin’s price increased from $0.002 on April 1 to $0.004 on April 4. Musk resumed tweeting about the token in December 2020, which caused its price to skyrocket.
President-elect Donald Trump announced Tuesday that Elon Musk and Vivek Ramaswamy will lead a novel “Department of Government Effectiveness” (DOGE) in his second administration. Trump said the two would work together to “cut down government bureaucracy, cut the excess…
— Wu Blockchain (@WuBlockchain) November 13, 2024
Musk’s actions are again disrupting the cryptocurrency market today, in particular the valuation of Dogecoin. Future President Donald Trump announced that Elon Musk and Vivek Ramaswamy will head a novel agency called Department of Government Effectiveness (DOGE). This latest staffing announcement from Trump has sparked optimism and excitement among cryptocurrency traders and analysts, betting that it could potentially benefit the industry.
DOGE market cap currently at $55 billion. Chart: TradingView.com
Potential Price Performance of DOGE, Musk and Crypto
Interestingly, a newly created agency under Trump that aims to “cut red tape” also started as a meme and joke on Twitter/X. The agency’s name is a play on a popular meme, and its supporters even suggested that its mascot would be the same Shiba Inu dog. Much like Musk did with the meme coin, enthusiasts and traders expect the same price spike following his nomination.
In addition to the creation of DOGE, other rumors are increasing the price action of Dogecoin and cryptocurrencies. For example, talks are being conducted that may be published on the market Dogecoin ETFs or other cryptocurrency-related financial products that may augment liquidity and improve access. Thanks to Musk’s witty yet effective approach to cryptocurrencies and his growing influence under Trump, many argue that Dogecoin and cryptocurrencies will benefit in the long run.
Here’s what you can expect from Dogecoin’s price
Immediately after Trump’s confirmation, the market was abuzz with speculation, and Dogecoin’s charts reacted positively. The token’s charts show an upward trend, with a high chance of a price breakout.
Meanwhile, market analysts say that Dogecoin is trying to break out of the “descending triangle” by establishing an upward trend. In the past, the price of this digital asset has surged after breaking out of a descending triangle. Experts believe that the price of Dogecoin will reach USD 0.70 in the brief term and may reach USD 3 in the long term, provided that momentum and favorable market conditions are maintained.
Featured image from NewsWatch, chart from TradingView
