Elon Musk’s favourite cryptocurrency, Dogecoin (DOGE), may very well be on the verge of an enormous parabolic rally following the latest victory of Republican U.S. presidential candidate Donald Trump.
May Trump’s Victory Catapult Dogecoin To $23?
Earlier at present, 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 anticipated to influence different digital currencies, particularly Musk’s most popular Dogecoin.
In keeping with crypto technical analyst Ali Martinez’s evaluation, DOGE is nearing a breakthrough on the 0.50 Fibonacci retracement degree, 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 doable future worth targets by figuring out key assist and resistance ranges. Traditionally, DOGE has incessantly aligned with Fibonacci extension ranges throughout bull runs.
In keeping with Martinez, if DOGE follows the same trajectory within the subsequent bull run, it might surge to anyplace between $4 and $23.
The chart under illustrates that the subsequent important Fibonacci extension degree for DOGE is 1.00, inserting its worth simply above $0.739, past its present ATH of $0.7316, set in Might 2021.
At the moment, DOGE is buying and selling at $0.202, having risen an spectacular 18% prior to now 24 hours, largely fueled by Trump’s victory. If DOGE reaches the 1.618 Fibonacci extension degree, its worth might leap to $3.94 – greater than 5 occasions its present ATH.
Beneath extraordinarily bullish situations, DOGE might even hit the two.272 Fibonacci extension degree, pushing its worth to $23.25 – almost a 100x improve 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 doubtless maintain important affect throughout Trump’s time period as president.
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Musk has incessantly voiced his assist for DOGE on social media platform X, typically triggering short-term worth surges pushed by retail investor curiosity.
With Musk’s doable affect within the new administration, it wouldn’t be shocking to see coverage choices that would not directly profit cryptocurrencies like Dogecoin.
Knowledge reveals that DOGE whales might anticipate a major worth surge, as latest transactions point out the accumulation of greater than 2.1 billion tokens over the previous week.
That stated, DOGE traders ought to train warning because the token has already skilled a considerable run-up just lately and could also be flashing overbought alerts.
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