Observing closely, Dogecoin has experienced an additional 20% increase in value today.
Epic win for meme cryptocurrency Dogecoin (DOGE 0.89%), showing up as one of the year's biggest victors in the extraordinary market surge. At the time I penned this text, Dogecoin was up by 20% within the past 24 hours. Yet, by 1:45 p.m. ET, Dogecoin had skyrocketed an additional 3.6%, making its one-week growth exceed 120%.
You gotta keep your eyes peeled on this, be it crypto enthusiast or not.
Naturally, the query arises – is this climb sensible at all, or if today's shift in this dog-themed crypto holds little substance. Let's dissect the fundamental factors impacting today's price activity, and peek where Dogecoin could head moving forward.
Trump, Trump, Trump
The tales encompassing many asset classes have surely gained momentum from the triumph of the GOP, sweeping the White House, Senate, and looking at securing the House as well. Yet, assets linked to President-elect Donald Trump (and Elon Musk, who attended a few rallies during Trump's reelection bid) have outperformed compared to others.
Dogecoin saw its latest surge this year due to some colorful comments from Elon Musk mentioning he would establish the "Department of Government Efficiency" (DOGE) in some capacity within the new administration to help Trump slash expenses. This wink towards Dogecoin, one of many from the Tesla CEO, led to an initial spike earlier this year, making waves among Dogecoin supporters anticipating more from Elon regarding this token if Trump secured reelection.
As usual, Musk is eloquent with his words. His Dogecoin support remains unfaltering, though his precise Dogecoin token ownership remains a mystery. Dogecoin, like other assets profiting from the U.S. governance changes, is riding high on this success, with its token up by more than double post-election.
Where could Dogecoin be headed from here?
The White-Knuckle rally has been quite thrilling to monitor, and it's even more spectacular considering minimal profit-taking activity since the election. Tesla stock shares sank approximately 6% today as investors seemingly chose to bank some revenue ahead of a potential consolidation phase. However, if one thing is universally accepted about crypto investors (and speculators), it's that consistent trends can spark meaningful tailwinds enduring for some time. Hence, many investors might feel it's premature to invest in bullish Dogecoin positions at this juncture.
Data on liquidations, courtesy of Coinglass, shows long liquidations surpassed short liquidations during yesterday's session (liquidations refer to derivatives positions that were forcibly closed). However, today's data may display a different picture. For now, Dogecoin remains a popular speculative trading instrument for investors to seize the Trump victory. Until the market's sentiment or mood alters, it appears to be a case of non-stop festivities for investors.
It's crucial to consider the impact of finance and investing when analyzing the current surge of Dogecoin. Elon Musk's support and comments about Dogecoin have significantly contributed to its financial growth, making it an attractive option for investors looking to capitalize on this trend.
Moving forward, the question of whether Dogecoin's current climb is sustainable or just short-term market speculation remains. With Musk's continued support and the positive market sentiment, Dogecoin's investing potential seems promising.
