Dogecoin (DOGE) Is Up 15% In 24 Hours! Could It Set A New Yearly High?

Interest in Dogecoin (DOGE) futures is surging to record highs previously observed in April. Renewed interest in the popular meme coin comes after speculation that Elon Musk, the “Dogefather” could become an integral part of the Trump administration if the former President wins the election in November. 

Trump Promises Integral Role for Musk in His Cabinet, Resulting in DOGE Surging

The price of DOGE is up 15% in the past 24 hours. This comes following Musk’s appearance at the Trump rally and a post he made on X of himself with the Dogecoin avatar. Traders are terming the price hike as a play on Trump’s popularity among voters. 

DOGE-denominated futures have risen 33% since Sunday to 8 billion tokens. This is just 12% shy of the record 9 billion DOGE in open interest. As per data from CoinGlass, bets on DOGE have spiked from $850 million to $1.3 billion. 

Musk’s significant support to re-elect Donald Trump and his participation in rallies over the past month with increased donations and endorsements have boosted the former President’s odds of winning the 2024 presidential election. In various interviews, the billionaire CEO of Tesla and SpaceX has pinned the idea of establishing a Department of Government Efficiency, abbreviated as DOGE, in the Trump administration to make government spending more efficient. 

As per the BBC, Trump said he would put Musk in charge of running a government efficiency commission if he wins a second term in the White House.

DOGE Could Post a Yearly High of $0.2888 if it can Move Beyond Key Resistance Level 

DOGE traders have jumped on the narrative and view it as a bullish catalyst for the memecoin in the near term. Popular crypto analyst Ali Martinez predicted the cryptocurrency to gain another 25% which will trigger a rally to at least $0.175. Analysts at Rekt Capital also forecast that DOGE could hit $0.2 in 2025. Dogecoin has successfully retested the red level of $0.14 as support and rallied towards the resistance of $0.16. 

Dogecoin’s price has rallied 35% over the past 30 days as it noted an uptick in whale holdings. The proposed Department of Government Efficiency and Trump’s promise to offer Musk a key role in his cabinet has fueled DOGE’s sentiment to $1. 

DOGE is attempting to sustain a move above the $0.1756 resistance level. This would see the memecoin rise into a key channel, but it saw rejection at the level as selling pressure increased due to increased chances of profit-making. 

Since bouncing off the 100-day Simple Moving Average (SMA) on Saturday, DOGE has gained 33% in value. With its buying momentum rising, Dogecoin could set a new yearly high above $0.2288 if it can reclaim the $0.1756 resistance level and maintain a move above it. However, the Relative Strength Index (RSI) for DOGE has entered the overbought region, indicating a potential price correction for the memecoin. 

IntoTheBlock’s Global In/Out of the Money metric also suggests a price correction for DOGE. As per the data, over 92% of the total DOGE that is in supply is in profit, and when a large portion of a cryptocurrency’s supply is in profit, investors may look to partially book profits, causing selling pressure on the asset. 

The Market Value to Realized Value (MVRV) Ratio for DOGE, which calculates the average profit of all holders based on the price each token last moved, is at a five-month high of 77%. This proves that all DOGE holders are up on their initial investment by an average of 81%. However, a high MVRV signals the potential for a price correction. 

With the MVRV currently at levels last seen during the meme coin season, which ended in May, investors are anticipating another bull run for the meme coin market. 

At the time of writing, Dogecoin (DOGE) is trading at $0.1739 – up 5.8% in the last 24 hours 

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