Dogecoin is among the many high movers in right now’s crypto market, persevering with to trip Donald Trump’s (and Elon Musk’s) coattails larger.
Meme crypto Dogecoin (DOGE 8.67%) has clearly been one of many largest winners on this yr’s unimaginable rally. On the time I began penning this piece, Dogecoin was up 20% over the previous day. Nonetheless, as of 1:45 p.m. ET, Dogecoin has now surged 23.6% over the previous 24 hours, bringing this token’s one-week good points to greater than 120%.
That is definitely one thing to concentrate to, whether or not you are a crypto fanatic or not.
After all, the query then turns into whether or not this rally is smart in any respect, or if there’s little to make of right now’s transfer on this dog-inspired cryptocurrency. Let’s dive into the important thing drivers behind right now’s value motion, and the place Dogecoin might be headed from right here.
Trump, Trump, Trump
The narrative round many asset courses has definitely gotten a lift from the current Republican political victory that is swept the White Home and Senate, and appears poised to consequence in charge of the Home as nicely. Nonetheless, some belongings tied to President-elect Donald Trump (and Elon Musk, who appeared at various rallies supporting the previous president in his reelection bid) have outperformed others.
Dogecoin obtained its most up-to-date enhance this yr from feedback courtesy of Elon Musk that he shall be seeking to arrange the “Division of Authorities Effectivity” (DOGE) in some position inside the new administration to assist Trump reduce prices. This nod to Dogecoin, considered one of many from the Tesla CEO, led to an preliminary spike earlier this yr, buoying the meme token amongst followers who anticipated to listen to extra from Elon about this token if Donald Trump gained the election.
Traders can definitely depend on Musk talking his thoughts. His assist for Dogecoin seems to stay robust, although any form of correct indication of what number of tokens he might personal stays unknown. But like many belongings which are appreciating merely due to the governance modifications within the U.S., Dogecoin is clearly using excessive on this win, with its token greater than doubling for the reason that election.
The place might Dogecoin be headed from right here?
This supercharged rally has definitely been one thing to look at, and it is much more unimaginable contemplating little profit-taking exercise has occurred for the reason that election. Shares of Tesla inventory sank round 6% right now in intraday buying and selling, as traders appeared to look to take some income forward of what might be a consolidation section. But when there’s one factor that is nicely documented about crypto traders (and speculators), it is that momentum can present significant tailwinds that may final some time. Thus, many traders might really feel now’s too early to take any bullish bets on the highest meme token fairly but.
Liquidations information, courtesy of Coinglass, reveals that lengthy liquidations really outpaced quick liquidations throughout yesterday’s session (liquidations discuss with derivatives positions that had been forcibly closed), although I might anticipate right now’s information to inform a distinct story. But for now, Dogecoin stays a high speculative buying and selling car for traders to reap the benefits of Trump’s presidential victory. Till the sentiment or temper modifications available in the market, it seems to be get together on for traders.
