Popular meme coin Dogecoin (DOGE) gained a significant 19.8% to $0.2016 early Wednesday as news that Donald Trump had secured his second presidential term hit the markets. DOGE market cap has now increased from $24.65 billion to $29.08 billion, underlining significant capital inflows into the cryptocurrency in the meme coin category.
Popular meme coin surged
Dogecoin (DOGE) entered a new rally as Donald Trump stepped into his second presidential term. On Wednesday morning, DOGE price increased by 19.8% to $0.2016. Analysts were quick to jump on board, with many noting the potential for further upside, though this is offset by the coin’s inherent volatility and dependence on social media-driven catalysts. Nic Puckrin, co-founder and CEO of Coin Bureau, pointed to one specific reason for the increase. He said:
Dogecoin may also be bullish on the very real possibility that Elon Musk [longtime Dogecoin advocate] could be appointed head of the Department of Government Efficiency in the Trump administration.
What is the latest situation in DOGE price?
This speculation is based on comments Trump made in September about appointing Musk to a “government efficiency commission.” Musk has since referred to this fictional role on social media as the “Department of Government Efficiency (DOGE).” Dogecoin’s recent performance shows resilience, with a 162% price increase over the past year, outperforming 73% of the top 100 crypto assets and beating both Bitcoin and Ethereum in comparative gains.
According to analysts, DOGE is currently trading above its 200-day simple moving average (SMA), which is traditionally a bullish signal indicating strong upward momentum. DOGE has had 17 green days in the last 30 days – a 57% success rate – indicating solid market confidence. However, despite this recent rally, the coin remains 73% below its all-time high, and given inflationary pressures, DOGE will need significantly more capital to revisit these historic highs.
Analysts pointed out critical levels
Crypto analyst Jake Wujastyk noted that DOGE appears poised to test a breakout above the $0.20 level, a critical psychological and technical barrier. The analyst noted that “we are seeing renewed enthusiasm as the Government Efficiency (DOGE) narrative adds fuel.” But he said DOGE needs sustained buying pressure to break out definitively above the $0.20 range. If DOGE can overcome this hurdle, it could form a new support level, but the path forward may not be free from volatility. The recent rally has pushed DOGE towards a new yearly high, a level that investors are watching closely.
From a technical perspective, a break above $0.20636 could confirm a more sustainable uptrend and possibly set DOGE on track for more gains in the near term. Meanwhile, popular analyst Kaleo put forward a rather optimistic scenario, suggesting that DOGE could reach $0.40 this week. Although Kaleo’s outlook highlights DOGE’s speculative appeal, it is an ambitious goal as doubling the current price in such a short period of time would require unprecedented buying pressure.
