Dogecoin Price Levels to Watch After Post-Election Rally

Dogecoin (DOGEUSD) has been one of the biggest winners following the election of Donald Trump last week, and cryptocurrency coin received a new boost this week when the president-elect announced the creation of a new agency with the acronym DOGE.

The department, which will be co-led by a prominent Trump supporter and crypto enthusiast. Elon Muskaims to reduce public spending and reduce excessive administrative formalities. Throughout Wednesday, Musk posted several references to the DOGE department on his social media platform. Xwhich included the meme piece’s symbolic Shiba Inu dog.

Since Election Day, Dogecoin has more than doubled to its highest level in three years, with the price currently sitting just below this week’s level. peak as retail traders return to cryptocurrencies amid expectations of a crypto-friendly incoming administration. Dogecoin was unchanged on Thursday afternoon at $0.39.

Let’s take a closer look at Dogecoin weekly chart and identify key price levels that investors can watch.

Cup and handle cutout

Dogecoin has become a classic cup and handle between November 2021 and October this year before the price makes a decisive decision burst above the model’s upper trendline following last week’s election results.

It is important to note that the movement occurred at the highest weekly level trade volume since the beginning of March, opening the way to new speculative purchases.

While the relative strength index (RSI) confirms the bullish price momentum with a reading above 80, the indicator is also flashing extremely overbought conditions, which could lead to sudden reversals.

Let’s use technical analysis predict a potential increase price target monitor, while identifying key elements support areas to monitor.

Main metric price target to watch

Investors can forecast a potential price upside target using the measuring principlea technique that uses price evolution to predict future movements. When applying the tool, we will measure the change in percentage, taking into account the significant fluctuations in Dogecoin prices.

To do this, we calculate the percentage change in the cup and “cup” of the handle and add it to the upper trendline value of the pattern. For example, we are applying a 530% increase to $0.22, which projects a target of $1.385.

It should be borne in mind that Dogecoin market capitalization It would need to increase to around $203 billion from its current market cap of around $58 billion to achieve this bullish price target.

Key Support Areas to Watch

The first support area to watch is around $0.35, a place on the chart where the meme coin’s price could attract support around mid-August 2021. counter-trend peak.

If this level is not maintained, the cryptocurrency could fall to the $0.285 level. Investors can search entry points in this area close to a series of comparable prices positioned just below the month of October 2021 swing high.

Finally, a deeper correction could lead to a retest of the $0.22 level, a region where traders who prefer not to chase breakouts could look for buying opportunities near the cut and manage the pattern’s upper trendline.

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