Elon Musk’s favorite cryptocurrency, Dogecoin (DOGE), could be about to experience a massive parabolic rally following the recent victory of US Republican presidential candidate Donald Trump. Could Trump’s victory catapult Dogecoin to $23?
Earlier today, Trump was elected the 47th President of the United States with a convincing victory over Democratic presidential candidate Kamala Harris. Following Trump’s victory, Bitcoin (BTC) surpassed its all-time high (ATH) of $73,737, reaching all-time highs.
As BTC trades at new highs, the ripple effect of a Trump victory is expected to impact other digital currencies, particularly Musk’s favored Dogecoin.
According to analysis by crypto technical analyst Ali Martinez, DOGE is poised for a breakout at the 0.50 Fibonacci retracement level, potentially leading to a rally up to the 1.618 Fibonacci extension levels or even 2,272.
For the uninitiated, Fibonacci extensions are used in technical analysis to project possible future price targets by identifying key support and resistance levels. Historically, DOGE has frequently aligned with Fibonacci extension levels during bull runs.
According to Martinez, if DOGE follows a similar trajectory during the next bull run, it could reach between $4 and $23.
The chart below shows that the next significant Fibonacci extension level for DOGE is 1.00, placing its price just above $0.739, beyond its current ATH of $0.7316, set in May 2021.
Currently, DOGE is trading at $0.202, following an impressive 18% rise over the past 24 hours, largely fueled by Trump’s victory. If DOGE reaches the 1.618 Fibonacci extension level, its price could surge to $3.94, more than five times its current ATH.
Under extremely bullish conditions, DOGE could even reach the 2.272 Fibonacci extension level, pushing its price to $23.25, a nearly 100-fold increase from its current value. Elon Musk’s Potential Impact on Trump’s Cabinet
Although Musk’s potential role in Trump’s cabinet remains unclear, the world’s richest man will likely wield significant influence during Trump’s presidential term.
Musk has frequently voiced his support for DOGE on social media platform X, often triggering short-term price increases driven by retail investor interest.
With Musk’s possible influence in the new administration, it would not be surprising to see policy decisions that could indirectly benefit cryptocurrencies like Dogecoin.
Data shows that DOGE whales could expect a significant price rally as recent transactions indicate the accumulation of over 2.1 billion tokens over the past week.
That said, DOGE investors should exercise caution as the token has already seen a substantial rise recently and could be giving off overbought signals.
At press time, BTC is trading at $74,249, up 8% in the past 24 hours.
