Elon Musk’s Support Drives DOGE Price Surge, Echoing 2020 Success

• The recent surge in Dogecoin price is also driven by speculation around Elon Musk’s potential role in the Trump administration, where he may lead a “government efficiency commission.”
• Analysts predict DOGE could be preparing for a parabolic bull run, similar to its 2021 rally.

The meme coin sector led by Dogecoin (DOGE) has once again taken up the charge of the broader crypto market rally as the DOGE price shot up more than 30% in the last 24 hours shooting past $0.30. With this, Dogecoin extends its weekly gains to more than 90% as it stands to benefit the most following the Donald Trump victory and the Fed rate cut last week, reported CNF.

In a week’s time, DOGE has added more than $10 billion to its market cap climbing two ranks above XRP and USDC stablecoin, thereby becoming the sixth-largest cryptocurrency as of date. Currently, the market cap of Dogecoin stands at $42.3 billion while the daily trading volume shot up by 200% to $18.96 billion.

The flipping of XRP and USDC by DOGE also comes as billionaire Elon Musk continues to tease about the meme coin. Musk has often talked and shown interest in leading the Department of Government Efficiency (D.O.G.E) in the Trump administration.

This has sparked expectations among traders that “DOGE” could gain more mainstream media attention and retail trading interest. Trump has already mentioned he would appoint Musk to lead a “government efficiency commission” if he secures a second term as U.S. president

Amid the excitement around the US election and the Trump victory, the Dogecoin price has surged by a staggering 156% outperforming almost all of the top-ten altcoins from the list.

Will Dogecoin Price See A Parabolic Rally Ahead?

Following the recent gains, the DOGE price has given a crucial breakout on a multi-year chart. As a result, several market analysts are expecting a mega bull rally for Dogecoin, similar to what the world’s largest meme coin saw during the 2021 bull run. During that period, the DOGE price had surged by a staggering 1500% thereby going to hit its all-time high levels of 73 cents.

The 50-week simple moving average is set to cross above the 100-week SMA, signaling a bullish signal for momentum traders who may have been waiting for confirmation. A similar crossover occurred following the November 2020 U.S. election, reported CNF.

If history repeats itself, DOGE could continue its rally in the coming weeks, potentially surpassing the 2021 high of 73 cents. Additional indicators, such as the 14-week relative strength index, have risen past 70, signaling strong upward momentum. This threshold marked the FOMO (fear of missing out) phase during the 2021 bull run.

Crypto analyst Ali Martinez suggests that Dogecoin is on the verge of a parabolic rally. Drawing from historical patterns, Martinez forecasts that the price could peak between the 1.618 and 2.272 Fibonacci levels, which translates to a potential price range of $3.95 to $23.26.