Dogecoin (DOGE) has surged by a whopping 88% this week to $0.28, its highest price since December 2021.
DOGE's market value has seen remarkable growth, exceeding $42 billion following the re-election of Donald Trump, influenced by political changes in the United States.
Analysts predict that DOGE could soon break through the $0.31 resistance level and have set a target price of $0.39. Dogecoin’s recent rise reflects market dynamics shaped by both political developments and technical analysis, bringing it back to prominence in the crypto world.
Dogecoin Rises: The New Rise of Meme Coins
In the cryptocurrency market, Dogecoin has resurfaced after the last two years and reached the level of $0.28. This 88% increase has left Dogecoin behind Ripple (XRP) in terms of market value. This sudden increase is no coincidence; analysts state that increasing political events and the revival of investor interest are effective. Speculations and market trends show that Dogecoin can continue this rise with increasing trading volume. In particular, strong buying pressure contributed to DOGE's appreciation.
The Impact of Political Developments on Dogecoin
The main reason for Dogecoin’s price explosion was Donald Trump’s victory in the 2024 US elections. Following this development, DOGE recorded a massive 25% increase in just one trading session. In the cryptocurrency market, an increasingly clear correlation is observed between political stability and leadership and the increase in crypto asset trading. The trading of meme coins, in particular, is strongly affected by such political events. In addition, economic policies are seen to play an increasingly important role in shaping cryptocurrency investments.
Technical Analysis: Where Is Dogecoin Headed?
Technical analysis on the DOGE/USD charts reveals many positive indicators that support the current rise of DOGE. According to the Super Trend indicator, the green line below the price of DOGE shows that there is strong upward momentum and the price has the potential to break above the current resistance levels.
Assessing Market Sentiment: MACD Indicator
The Moving Average Convergence Divergence (MACD) indicator is an important tool for predicting the future movement of DOGE. Currently, the MACD line (blue) is above the signal line (orange), indicating strong upward momentum. This technical structure indicates that the price of DOGE may continue to move upwards. Furthermore, the current favorable market conditions are leading investors to take advantage of the uptrend in DOGE.
Price Forecasts: Challenges and Possible Obstacles
Dogecoin could see profit-taking after a rapid rally as it targets the critical $0.31 resistance level. If DOGE breaks through this resistance level, the $0.39 target looms large, indicating a return to June 2021 price levels. However, investors should remain cautious; increased profit-taking could pull DOGE back to the $0.19 support level. Therefore, the sustainability of DOGE’s price momentum will depend on maintaining investor confidence against political and economic volatility.
