Highlights:
- Dogecoin price has today rallied through a major resistance at $0.397
- Rally points to strengthening momentum ahead of Trump’s presidency
- If bulls hold above resistance, $0.50 could be a key target in the day
Dogecoin is one of the top altcoins, making double-digit percentage gains in the last 24 hours. Dogecoin was up by 12.12% when writing to trade at $0.416. Trading volumes were also on the rise, up by 32% in the last 24 hours to hit a high of $5.61 billion.
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The rising bullish sentiment around Dogecoin coincides with the rising bullish sentiment around altcoins, as investors increasingly believe that altcoins for the 2024/25 cryptocurrency cycle have started. However, there are more fundamental reasons why Dogecoin appears to be outperforming many of the top altcoins today.
Elon Musk’s D.O.G.E Expected to Positively Impact Dogecoin Price
One of them is Elon Musk’s factor in the market. One of them is the Elon Musk connection. Elon Musk is set to head the Department of Government Efficiency (D.O.G.E) when Trump takes office next week. This has left many Dogecoin investors excited and for good reason.
Besides the fact that the new department is named after the top meme coin, Elon Musk is one of the biggest supporters of Dogecoin. It was his support and hype factor that saw Dogecoin become one of the best-performing meme coins in the 2020/21 cryptocurrency bull cycle.
Now that he is set to take a position of influence and deliberately chose to name the new department after Dogecoin, the odds are he could reignite the hype a second time. This could see money continue to flow into Dogecoin as investors anticipate a potential parabolic move. The result is that Dogecoin could sustain the momentum it has built up in the last 24 hours going into the Trump presidency.
Dogecoin Could Gain Adoption Thanks to the Elon Musk Factor
There is also growing speculation that with Elon Musk now one of the most powerful people on the planet, Dogecoin could get government backing. This is especially because the Trump presidency is widely expected to be pro-crypto, and Elon Musk openly endorses Dogecoin. This could see Dogecoin gain favor with businesses and potentially become a currency for everyday transactions. This could see the underlying value of Dogecoin rise significantly, further supporting its potential to go parabolic soon.
dogecoin was founded in the US
just sayin’ ¯_(ツ)_/¯
— Shibetoshi Nakamoto (@BillyM2k) January 16, 2025
X Super App Rumored to Incorporate Dogecoin
The hype around Dogecoin being adopted for everyday transactions is also anchored on Elon Musk building an everything app. The app is expected to turn X into an all-in-one platform where users not only interact but also make payments. Rumors are swelling that Dogecoin could be one of the cryptocurrencies that will be used to make payments on the new super app. These rumors are given credence by leaked statements and app code by Linda Yaccarino, the X CEO.
An apparent leak of the latest software code behind Elon Musk’s X has sparked rumors that “X Money” — the name for its payments system — could launch "at any second now.” pic.twitter.com/tE2a8ft58Y
— The Kraken (@decappo72) January 3, 2025
The excitement around Dogecoin is also evident in the rising bullish sentiment around it on social platforms. Aggregated data through the CoinMarketCap sentiment tracker shows that 87% of users are currently bullish on Dogecoin. Such strong bullish sentiment at a time when DOGE is pumping could help push the price even higher in the short term.
Technical Analysis – Dogecoin Price Breaches Key Resistance As Bulls Take Control
From the charts, Dogecoin is in a breakout. After ranging for days, Dogecoin today broke out with a rally through the $0.397 multi-week resistance.
If Dogecoin sustains momentum and ends the day above $0.397, then a rally to $0.467 could follow in the short term. Sustained intraday momentum could also see Dogecoin rally to $0.50 in the day.
Recap
Dogecoin is riding on the excitement around the incoming Donald Trump presidency. With Elon Musk taking an important role in government, Doge investors expect a parabolic price move after Trump’s inauguration.
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