Dogecoin initially started as an “inside joke” among crypto enthusiasts, but quickly became one of the 10 largest digital assets by market capitalization. Today, its value is $55.31 billion, based on current prices, and its value has been increasing slowly recently. Based on technical and market charts, the popular meme coin has broken out of its descending triangle, suggesting an upward trajectory ahead.
As of Wednesday, Dogecoin is trading at $0.3796 – and has seen a solid 113% rally in the past week – with analysts targeting a price of $0.70 in the short term and $3.00 in the long term. Like Bitcoin, DOGE’s recent price action is caused by several factors, including the growing influence of Elon Musk in the new Trump administration.
Source: Bitstamp
The long history of Musk and Dogecoin
Although Dogecoin is not Elon Musk’s idea, the Twitter/X owner has a long history with the famous coin. Musk first mentioned Dogecoin on April 2, 2019, saying it was his favorite cryptocurrency and adding that it was pretty cool. After sharing his post, the price of the coin increased from $0.002 on April 1 to $0.004 on April 4. Musk started tweeting about the token again in December 2020, causing its price to rise.
President-elect Donald Trump announced Tuesday that Elon Musk and Vivek Ramaswamy will lead a new “Department of Government Effectiveness” (DOGE) in his second administration. Trump said the two men would work together to “dismantle government bureaucracy, cut excesses…”
-Wu Blockchain (@WuBlockchain) November 13, 2024
Musk’s actions are once again disrupting crypto today, particularly Dogecoin’s valuation. New President Donald Trump announced that Elon Musk and Vivek Ramaswamy would lead a new agency called the Department of Government Effectiveness (DOGE). This latest recruiting announcement from Trump has sparked optimism and excitement among crypto traders and analysts, betting that it could potentially benefit the industry.
DOGE market cap currently at $55 billion. Chart: TradingView.com
DOGE, Musk, and Crypto’s Potential Price Performance
Interestingly, the newly created agency under Trump, which aims to “cut red tape,” also started as a meme and joke on Twitter/X. The agency’s name is a pun on the popular meme, and its supporters have even suggested that the same Shiba Inu dog be used as a mascot. Like what Musk did with the same coin, enthusiasts and traders are expecting the same price hike with his appointment.
Besides the creation of DOGE, other rumors are driving Dogecoin and crypto price action. For example, there is talk that the market could see the release of Dogecoin ETFs or other crypto-related financial products that could improve liquidity and access. With Musk’s humorous yet effective approach to crypto and his growing influence under Trump, many say Dogecoin and crypto will benefit in the long run.
Here’s what to expect from the price of Dogecoin
Immediately after Trump’s confirmation, the market was in full swing of speculation and Dogecoin’s charts responded positively. The token’s charts show a bullish trend, with high chances of a price breakout.
Meanwhile, market analysts claim that Dogecoin is attempting to break out of a “descending triangle pattern,” creating an uptrend. In the past, the price of this digital asset has surged after breaking out of its descending triangle. Experts believe that Dogecoin price will reach $0.70 in the short term and could reach $3 in the long term, provided that the momentum and favorable market conditions continue.
Featured image from NewsWatch, chart from TradingView
