Dogecoin Reaches Seven-Month High of $0.21 During Election Day

TLDR

• Dogecoin surged to $0.21, reaching a seven-month high during U.S. Election Day 2024
• DOGE flipped XRP to become 7th largest crypto with $30B market cap
• Trump-Musk mentions of “Department of Government Efficiency” (D.O.G.E.) fueled rally
• Bitcoin hit new ATH of $75,000, contributing to overall crypto market optimism
• Traders show strong bullish sentiment with $140M in longs vs $74M in shorts

Dogecoin (DOGE) reached $0.21 on November 6, 2024, marking its highest price point in seven months. The price surge came during U.S. Election Day, following weeks of social media activity from Elon Musk and campaign messaging from Donald Trump’s team.

The meme cryptocurrency showed a 30% increase over 24 hours and gained 20.6% over the past week, according to data from CoinGecko.

This momentum helped Dogecoin overtake Ripple (XRP) in market capitalization, securing its position as the seventh-largest cryptocurrency with a total value of $30 billion.

The rally gained steam after former President Donald Trump and Tesla CEO Elon Musk discussed the concept of a “Department of Government Efficiency” (D.O.G.E.) during campaign events. Musk’s social media posts and public appearances alongside Trump created buzz within the crypto community.

Bitcoin’s performance played a role in Dogecoin’s upward movement. The leading cryptocurrency reached a new all-time high of $74,504, driven by demand for Bitcoin ETFs and market optimism surrounding the election. This broader crypto market strength provided support for alternative coins like Dogecoin.

D.O.G.E. Would be a bigger narrative than AI and other sectors if Trump wins. Every major news network will be covering D.O.G.E.

If Trump wins and more celebrities start joining the D.O.G.E. Team and tweeting about it, this movement might snowball into a national phenomenon… pic.twitter.com/hggcJjj0BM

— Tommy Mustache ❤️❤️❤️ (@MustacheTommy) November 5, 2024

Trading data revealed strong bullish sentiment among investors. According to Coinglass Liquidation Map, traders opened $140 million in long positions compared to $74 million in shorts, indicating confidence in further price increases for DOGE.

Technical analysts identified a rounding bottom pattern in Dogecoin’s price chart, forming from mid-2022 through 2024. This pattern suggests potential for continued upward movement, with some analysts pointing to $0.36 as the next target level.

The current price remains below Dogecoin’s all-time high of $0.73, set in May 2021 during a previous period of intense social media attention. However, the recent surge represents an 84% increase over the past month.

Crypto market analyst Josh Gilbert from eToro noted the broader market conditions supporting the rally. “Although Bitcoin is sitting at record highs, it feels like this rally could just be getting started,” Gilbert stated in comments to industry media.

Trump’s campaign messaging included support for cryptocurrency innovation, contrasting with Vice President Kamala Harris’s less vocal stance on crypto policy.

Market participants labeled the recent price action as the “Trump trade,” reflecting expectations of crypto-friendly policies under a potential second Trump administration.

Musk’s historical influence on Dogecoin prices dates back to 2021, when his tweets helped drive the cryptocurrency to its all-time high.

D.O.G.E will fix it 🪓

— Elon Musk (@elonmusk) October 15, 2024

While he has recently decreased his public comments about cryptocurrency, his suggestion about leading a “D.O.G.E.” agency renewed speculation about his continued support.

Other cryptocurrencies also showed strong performance during this period. Solana (SOL), Shiba Inu (SHIB), and Sui (SUI) all recorded double-digit percentage gains as the overall crypto market capitalization expanded.

Technical support for Dogecoin currently sits near $0.16, according to market analysts. A drop below this level could indicate weakness in the current upward trend. Traders consider $0.085 as a key level, below which the bullish outlook would need revision.

Dogecoin, created in 2013 as a Bitcoin parody, has maintained its position as the largest meme cryptocurrency by market capitalization. The digital currency continues to demonstrate strong connections to internet culture and social media influence.

Current price analysis shows potential targets at $0.32, with some analysts projecting possible moves toward $0.74 and $1.08 based on Fibonacci projections, though these remain speculative targets.

The cryptocurrency recorded over $140 million in trading volume across major exchanges during the peak of the recent price movement, highlighting increased market participation during the rally.