• Crypto & Funx
• 23 Jun, 2024

Dogecoin surged 75% in October to $0.172, hitting its highest since May 2024, driven by Elon Musk's influence.

Musk's Department of Government Efficiency plan, coincidentally "DOGE", sparked speculation and boosted investor confidence.

Dogecoin’s breakout hints at a $1-$2 target, but resistance around $0.18 and $0.14 support remain critical.

Dogecoin has experienced a remarkable surge this October, climbing over 75% to reach $0.172 by the end of the month, marking its highest price since May 2024. The rally has captured the attention of investors and analysts alike, raising questions about the factors driving this unprecedented growth.

Elon Musk’s influence appears central to Dogecoin’s recent rally. At a for on October 27, Musk presented a plan to save $2 trillion in taxpayer money through his new Department of Government Efficiency. The department’s initials, DOGE, mirror Dogecoin’s ticker, sparking speculation on the cryptocurrency’s direction.

Musk’s actions have spurred investor confidence and reignited Dogecoin’s meme-driven appeal. His influence recalls the “Dogefather” era, where Musk’s tweets fueled a 64,000% surge during the 2020-2021 bull market. Now, his association with the Trump administration may further solidify Dogecoin’s market presence.

Dogecoin Breakout Signals $1-$2 Surge

Dogecoin is now moving upward from a symmetrical triangle pattern that has been forming since April 2021. In chart analysis, symmetrical triangles often suggest a continuation of the existing trend, with prices potentially reaching the gap between the upper and lower trendlines. Dogecoin showed the strength of this pattern in October 2020, when a similar breakout fueled an enormous 31,375% surge.

Photo: TradingView

Currently, the breakout hints that Dogecoin could aim for $1 during the ongoing bull cycle. Following chart-based predictions, the coin may even reach $2 in the coming years. This target aligns with current bullish indicators and the coin’s strong momentum.

Furthermore, Dogecoin’s weekly Relative Strength Index (RSI) recently rebounded from a long-standing support level of around 46, last touched in July. RSI rebounds after triangle formations have historically led to sustained rallies. If the breakout holds, Dogecoin may achieve the ambitious $1-$2 range, marking a 500-1,000% rise from its current price.

Dogecoin Faces Key Technical Challenges

Dogecoin faces potential obstacles ahead. A dip below the upper trendline of its symmetrical triangle pattern could push its value toward the $0.09-$0.07 range. Such a downturn would align with the 50-week Exponential Moving Average (EMA) and the triangle’s lower boundary, suggesting the cryptocurrency may continue fluctuating within its current limits.

Presently, Dogecoin encounters resistance of nearly $0.18. A sustained rise in buying pressure could drive the price to $0.20, a key psychological marker for traders. Yet, diminishing demand could prompt a retreat to immediate support around $0.14. An additional support level rests around $0.12, potentially serving as a floor should the market experience a broader pullback.

Many Dogecoin followers remain hopeful about its swift gains but maintain caution due to the asset’s history of sharp price swings. Close attention to the $0.18 resistance and $0.14 support will be essential for those tracking its movements.

Photo: Polymarket

Speculation around and Donald Trump’s association could further fuel Dogecoin enthusiasm, especially if Trump wins the 2024 election. a 65.1% chance of a Trump victory versus 34.8% for Kamala Harris. A Trump administration focused on efficiency reforms, backed by the Department of Government Efficiency, might boost Dogecoin’s appeal and market resilience.