Dogecoin Begins US Elections Crypto Rally Amid Trump’s Election Lead

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Published: Nov 5, 2024, 11:10 GMT+00:00

Key Points:

Dogecoin leads crypto gains on U.S. election day, rising 13.5% as speculation builds around a Trump victory and Elon Musk’s D.O.G.E. initiative.
Musk’s D.O.G.E. mention sparks investor interest, while a bullish “golden cross” signals potential for further upside.
DOGE price eyes $0.192 to $0.219 if bullish momentum holds, with $0.156 as key support if a pullback occurs.

Why is Dogecoin Outperforming Crypto Market on Election Day?

At least three indicators are responsible for the ongoing DOGE price boom, even though the crypto market is cautious ahead of the Donald Trump versus Kamala Harris standoff.

Elon Musk Mentions D.O.G.E. During Joe Rogan Podcast

DOGE is rising primarily due to billionaire investor Elon Musk.

The Tesla chief recently appeared in an interview with podcaster Joe Rogan, wherein he—again—discussed the purpose of the Department of Government Efficiency, his brainchild agency aimed at reducing excessive government spending to safeguard American taxpayers.

@elonmusk said $DOGE @ the 2:08:35 point of the joe rogan interview! Elon Musk just dropped a **$DOGE** bomb on the Joe Rogan Experience! 🚀🚀🚀 Is this a sign of things to come? 🤔 #Dogecoin #ElonMusk #Crypto #JoeRoganExperience pic.twitter.com/bsrkfRVeFJ

— GAMBIT (@collinsitaerial) November 5, 2024

The agency’s abbreviation is the same as Dogecoin’s official ticker, D.O.G.E., which typically excites speculators about the memecoin’s upside prospects. For instance, Musk’s D.O.G.E. mention during Trump’s Madison Square Gardens rally on Oct. 27 preceded a 30% increase in the Dogecoin market cap.

Pro-crypto Trump Gains Marginal Edge Versus Harris in Pre-Election Polls

Dogecoin traders have taken a bullish stance as Trump edges ahead of Harris in four of six key swing states, including Arizona and North Carolina.

Trump’s momentum is mirrored on crypto betting platform Polymarket, where he leads with over 60% odds of winning the 2024 presidential race, making him the favored candidate among online gamblers.

US presidential election polls. Source: Polymarket

DOGE, known for its high volatility and strong community support, is seeing renewed interest from speculators who view a Trump victory as a potentially positive outcome for the crypto market.

Dogecoin Golden Cross is Boosting Upside Outlook

The daily chart for Dogecoin suggests the formation of a “golden cross,” a technical pattern where the 50-day Exponential Moving Average (EMA) crosses above the 200-day EMA.

Crypto traders view it as a strong buy signal, suggesting potential for further upside. For instance, the last time Dogecoin exhibited a golden cross in 2023, it led to a 50% price rally, raising similar expectations in the current setup.

DOGE/USD daily price chart. Source: TradingView

Moreover, Dogecoin’s price action resembles a U-shaped recovery, rebounding from its six-month low of $0.080 on Aug. 5.

A strong daily close above the 0.618 Fibonacci retracement level, near $0.171, could open the door for further gains, potentially pushing DOGE/USD into the $0.192 to $0.219 range later this month.

However, if the price fails to break decisively above $0.171, it may prompt a pullback. The U-shaped support zone around $0.156 is likely to provide the next line of defense for bulls.

About the Author

Bob MasonChief Crypto Boss

TEST 30 He has written extensively for a broader audience and his current focus is on developments relating to the financial markets including, but not limited to currencies, commodities, alternative asset classes, and global equities.