Elon Musk’s favourite cryptocurrency, Dogecoin (DOGE), could possibly be on the verge of an enormous parabolic rally following the latest victory of Republican U.S. presidential candidate Donald Trump.
Might Trump’s Victory Catapult Dogecoin To $23?
Earlier as we speak, Trump was elected the forty seventh US president with a convincing win over Democratic presidential candidate Kamala Harris. Following Trump’s victory, Bitcoin (BTC) surged previous its all-time excessive (ATH) of $73,737, reaching unprecedented ranges.
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Whereas BTC is buying and selling at new highs, the ripple impact of a Trump victory is predicted to affect different digital currencies, particularly Musk’s most well-liked Dogecoin.
In accordance with crypto technical analyst Ali Martinez’s evaluation, DOGE is nearing a breakthrough on the 0.50 Fibonacci retracement stage, doubtlessly main to a rally as much as the 1.618 and even the two.272 Fibonacci extension ranges.
For the uninitiated, Fibonacci extensions are utilized in technical evaluation to challenge potential future worth targets by figuring out key help and resistance ranges. Traditionally, DOGE has often aligned with Fibonacci extension ranges throughout bull runs.
In accordance with Martinez, if DOGE follows an analogous trajectory within the subsequent bull run, it may surge to wherever between $4 and $23.
The chart beneath illustrates that the subsequent important Fibonacci extension stage for DOGE is 1.00, inserting its worth simply above $0.739, past its present ATH of $0.7316, set in Might 2021.
At present, DOGE is buying and selling at $0.202, having risen an spectacular 18% up to now 24 hours, largely fueled by Trump’s victory. If DOGE reaches the 1.618 Fibonacci extension stage, its worth may leap to $3.94 – greater than 5 occasions its present ATH.
Below extraordinarily bullish circumstances, DOGE may even hit the two.272 Fibonacci extension stage, pushing its worth to $23.25 – practically a 100x enhance from its current worth.
The Potential Affect Of Elon Musk In Trump’s Cupboard
Whereas Musk’s potential function in Trump’s cupboard stays unclear, the world’s richest man will possible maintain important affect throughout Trump’s time period as president.
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Musk has often voiced his help for DOGE on social media platform X, usually triggering short-term worth surges pushed by retail investor curiosity.
With Musk’s potential affect within the new administration, it wouldn’t be shocking to see coverage selections that might not directly profit cryptocurrencies like Dogecoin.
Information reveals that DOGE whales might anticipate a big worth surge, as latest transactions point out the accumulation of greater than 2.1 billion tokens over the previous week.
That mentioned, DOGE traders ought to train warning because the token has already skilled a considerable run-up lately and could also be flashing overbought indicators.
At press time, BTC is buying and selling at $74,249, up 8% within the final 24 hours.
Featured picture from Unsplash, Charts from X and Tradingview.com