Dogecoin Price Analysis: Will Trump’s Inauguration Drive a Potential Breakout in DOGE?

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Mirroring trends similar to its historical 2021 surge, Dogecoin (DOGE) has drawn traders’ attention in an amazing exhibition of market dynamics.

Dogecoin Price Analysis: Will Trump's Inauguration Drive a Potential Breakout in DOGE?

Currently trading above $0.36, the famous meme cryptocurrency has strong technical signs pointing possible additional gains.

Dogecoin Sentiment and Trading Activity Analysis

Most famously, open interest in DOGE futures has jumped $570 million in just three days to exceed $3.81 billion. With this 15% rise in open interest above the 10% gains in spot prices, traders expecting more upside clearly show strong speculative orientation.

The Volume-Weighted Average Price (VWAP) at $0.3516 serves as a crucial technical indicator, with DOGE currently trading above this level. The Accumulation/Distribution Line reading of 1,573 suggests steady capital inflows, supporting the bullish narrative.

DOGE/USD Technical Analysis

DOGE/USD

 

With current price action demonstrating positive momentum above the 100-hourly simple moving average, DOGE/USD has laid a strong basis above the $0.350 mark. Recently showing fresh buying power, the cryptocurrency broke over a negative trend line at $0.3350. Technical indicators present a positive picture; the RSI is above the 50 mark and the MACD picks momentum in the bullish zone.

While most support resides at $0.3550 and $0.3460, significant opposition levels have developed at $0.3650 and $0.3800. DOGE has shown great recovery from its past down movement as demonstrated by its recent price action exceeding the 76.4% Fibonacci retracing line.

Dogecoin Price Prediction and Potential Scenarios

Based on current technical analysis and market structure, DOGE appears poised for potential moves in two directions:

Bullish Scenario

  • Immediate target: $0.40 level, marked by the Keltner Channel’s upper band at $0.4007
  • Extended target: $0.45 if momentum continues
  • Key catalyst: Successful breach of $0.3650 resistance

Bearish Scenario

  • Support level: $0.3380
  • Risk of decline to $0.3120 if support breaks
  • Critical level to watch: $0.35 support zone

With DOGE seeing a 1,101% increase, market analysts—including crypto analyst Cephii—have made comparisons between present price movement and the trend of the 2021 election inauguration. Investors should be aware, nevertheless, that past trends do not ensure future performance.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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