Dogecoin news: Can DOGE soar with Trump back and Musk on board?

• Trump’s re-election and Musk’s influence may spark a Dogecoin resurgence.
• Whale activity and social sentiment are showing early signs of an upward trend.

Amid Donald Trump’s return to the White House, speculation is mounting about how his administration might influence the crypto markets. With Elon Musk – a close ally and vocal crypto enthusiast – having the incoming president’s ear, Dogecoin [DOGE] could emerge as a standout beneficiary.

This renewed proximity between two of the world’s most influential figures raises the question: will Dogecoin see another dramatic rally?

Is a Dogecoin rally on the horizon?

With Elon Musk now potentially having influence through President Trump, popular crypto analyst Ali Martinez suggests that Dogecoin may be on the verge of a major rally.

Martinez pointed out that, historically, once Dogecoin breaks above the 0.50 Fibonacci retracement level, it often continues to surge to the 1.618 or even the 2.272 Fibonacci levels.

Based on past bull cycles, the analyst predicted that Dogecoin could potentially reach prices between $4 and $23 if similar momentum follows.

Source: X

In addition, Dogecoin’s price over the years has seen dramatic spikes and declines, driven by community support and social media. The first major surge in 2017 coincided with the crypto boom and meme culture.

A breakout in 2021, fueled by Elon Musk’s tweets and his SNL appearance, led to record highs. However, the rally was short-lived, and Dogecoin entered a consolidation phase through 2022 and 2023.

Now renewed optimism has emerged for DOGE, partly driven by Musk’s growing influence in the political sphere.

Spotting early signs of momentum

Source: TradingView

Dogecoin’s trading volume has shown notable fluctuations over recent weeks, signaling shifts in market activity that could foreshadow a potential rally.

The recent spike aligns with increasing interest as Dogecoin’s price surged from the $0.13 range to above $0.19. This is a key indicator that investors may be anticipating significant developments.

Source: Santiment

Social sentiment around DOGE has also seen renewed optimism. Santiment data shows a substantial spike in social volume.Increased social media discussions and speculation on Musk’s influence may further fuel interest, possibly driving more retail and institutional investment.

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Whale transaction activity has seen a significant spike as well, particularly in the past 48 hours, coinciding with the US presidential race.

This increase in large-scale transactions could indicate growing investor interest, and if the trend persists, it may set the stage for a sustained upward momentum in Dogecoin’s price.