With Dogecoin’s price rising since Donald Trump’s election, investors are likely wondering how high Elon Musk can take the meme coin. The Tesla (TSLA) The CEO was asked to lead a new government division called the Department of Government Effectiveness (DOGE) alongside former GOP presidential candidate Vivek Ramaswamy.
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This department will primarily focus on reducing costs for the federal government and has nothing directly to do with crypto. But his name has helped push Dogecoin prices higher as the term DOGE continues to trend and that trend seems likely to continue as Trump takes office.
What is happening with Dogecoin?
Dogecoin is steadily rising today after a fairly volatile week. As of this writing, it is up 6.5% for the day and appears poised to continue rising. However, this meme coin, often considered a joke by serious investors, has seen meteoric growth over the past three months. up over 260%. Most of this growth occurred in the weeks following the U.S. presidential election.
Musk has long been a supporter of Dogecoin. He described it as “the people’s crypto” and attempted to incentivize companies such as McDonald’s. (MCD) to accept it. He recently said in an X-space that he still owns “a bunch of Dogecoin.” Now, the fact that he will head a government office called DOGE suggests that crypto will remain the center of attention, which is likely to drive prices higher.
So far, the DOGE concept is garnering support from the crypto community. Global Coinbase (COIN) CEO Brian Armstrong described it as “the key to America’s economic freedom.” Now, Armstrong himself may be about to get a job in the White House, as he is should meet Trump Soon.
Where will Dogecoin prices go from here?
It is difficult to speculate on how much Dogecoin prices might rise under Musk. As of this writing, DOGE is currently trading at $0.39 per coin. This low price could encourage speculative traders to increase their bets on Dogecoin, as the profit margin is still high while the risk is quite minimal. Given the volatile nature of meme coins, it is difficult to predict exactly how much prices will rise. In the short term, however, Dogecoin is expected to continue its upward trend.