Dogecoin (DOGE) price surged more than 75% in October, reaching $0.172 ahead of the month’s close, its highest level since May 2024.
Memecoin’s gains were largely due to Elon Musk, who spoke at Donald Trump’s New York campaign rally on Oct. 27 where he discussed plans to save taxpayers $2 trillion through his idea agency, the Department of Government Efficiency. These are the same initials as the Dogecoin ticker, DOGE.
Dogecoin is now showing a technical pattern that could lead to a price surge above $1.
DOGE has emerged from a three-year symmetrical triangle.
The potential for Dogecoin to reach $1 in the current bull cycle comes from a breakout of the giant symmetrical triangle pattern that has been active since April 2021.
In technical analysis, a symmetrical triangle is a continuation pattern that usually resolves in the direction of the previous trend, rising by the maximum distance between the triangle’s upper and lower trend lines.
Dogecoin price saw a symmetrical triangle breakout during the 2020-2021 period, rallying a massive 31,375% after breaking the upper trendline of the pattern in October 2020.
As of October 2024, the price of DOGE appears to have entered a similar breakout phase.
DOGE/USD weekly price chart. Source: TradingView
Applying technical rules, DOGE’s price is targeting $2 with potential upside over the next few years, with the potential to reach $1 in 2025.
Another important indicator supporting the bullish outlook is Dogecoin’s weekly Relative Strength Index (RSI), which has bounced from its historical support level of around 46 in July.
Historically, RSI support bounces following a consolidation pattern such as a symmetrical triangle often lead to sustained rallies, adding weight to the $1-$2 price target if the breakout holds. It is 500-1,000% higher than the current price.
Conversely, if DOGE slips below the upper trendline of the giant triangle, the chances of it continuing within the range increase, starting with a decline towards the $0.09-0.07 range, which is consistent with the 50-week EMA (red wave) and the lower trendline of the triangle.
Trump’s win will boost DOGE price
The newly discovered Musk-Trump connection could further amplify Dogecoin’s bullish hype if Trump wins the 2024 election, which is said to appeal to the same retail base that favors DOGE.
source: X
Musk confirmed he would work with the Trump administration on efficiency initiatives, with the shared “DOGE” acronym sparking speculation and strengthening Dogecoin’s meme appeal. This is similar to his tweets and the self-proclaimed “Dogefather” that helped DOGE surge 64,000% during the 2020-2021 bull market.
relevant: Expert Answer: What impact does Elon Musk have on the cryptocurrency space?
At PolyMarket, Trump’s probability of winning the 2024 presidential election is currently 64.1%, which is higher than Vice President Kamala Harris’s 35.9%.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.