Originally published on: October 31, 2024
Dogecoin has seen a remarkable price surge of over 75% in October, reaching $0.172 by the end of the month, its highest level since May 2024. This surge is largely attributed to Elon Musk’s recent comments at Donald Trump’s New York campaign rally discussing plans for his Department of Government Efficiency, which coincidentally shares the same initials as Dogecoin’s ticker, DOGE.
The meme-inspired cryptocurrency is now showing signs of a breakout from a three-year channel, suggesting a potential rally that could see its price soar beyond $1 in the coming years. This breakout from a symmetrical triangle pattern that has been in place since April 2021 indicates a positive trajectory for Dogecoin’s price.
Based on technical analysis, the symmetrical triangle breakout has historically resulted in significant price rallies for Dogecoin. In the previous bull cycle from 2020-2021, Dogecoin experienced a staggering 31,375% rally following a similar breakout pattern. This time around, the potential upside target for DOGE is set at $2, with expectations of reaching $1 sometime in 2025.
The weekly relative strength index (RSI) for Dogecoin has also bounced from a historical support zone, further supporting the bullish outlook for the cryptocurrency. With the breakout holding, there is a strong likelihood of Dogecoin’s price reaching 500-1,000% higher than current levels.
However, if DOGE fails to sustain its breakout above the triangle’s upper trendline, a decline towards the $0.09-0.07 range may be expected. This range coincides with the 50-week EMA and the triangle’s lower trendline, indicating a potential reversal in price direction.
The connection between Musk and Trump, along with the upcoming election, could further amplify Dogecoin’s bullish momentum if Trump secures victory in 2024. Musk’s involvement in efficiency initiatives with the Trump administration, coupled with Dogecoin’s meme appeal, could drive significant interest in the cryptocurrency.
It’s important to note that this article does not provide investment advice. Readers are encouraged to conduct their own research and analysis before making any investment decisions. For more insights on market trends and opportunities, subscribe to our Markets Outlook newsletter for valuable updates every Monday.
