Why is Dogecoin pumping today?

Dogecoin is in the green zone, rising across all time frames. The memecoin king achieved a 10% rise in the past 24 hours and seems to be on the verge of a massive breakout.

According to analysts, Dogecoin is waking up as the meme token’s chart shows a textbook breakout from a falling wedge. Dogecoin also enjoys strong buyer momentum, and it achieved multiple breaks of structure (BOS), all of which indicate a potential breakout.

Currently, $DOGE is testing a key weak high at $0.133, and the next stop will be the $0.16 point. If the support continues between the $19 billion to $20 billion market cap range, $DOGE could push past the resistance point and go beyond $21 billion in market cap. 

According to CoinGecko, Dogecoin has increased by 22.8% in the last seven days and by 32.7% in the last 30 days. At the time of writing, $DOGE is trading at $0.1334 and a market cap of  $19.5 billion. The memecoin has a 24-hour trading volume of $2.2 billion. 

Dogecoin surge started with Elon and Trump

The 2024 election forecast on Polymarket shows that Trump is winning by 60% over Harris. Trump’s success is tied to a potential role for Elon Musk in government, especially after his speech during Trump’s rally in Pennsylvania. 

During a town hall speech in Pennsylvania, Elon Musk mentioned the “Department of Government Efficiency,” also known as D.O.G.E., while answering a journalist’s question. This move sent waves in the crypto market, causing Dogecoin to surge. 

If Trump wins, Elon’s plan to create the “Department of Government Efficiency” (D.O.G.E) could materialize and send Dogecoin to a new all-time high. Elon Musk has a massive influence on Dogecoin. In 2021, his X posts contributed to the coin’s price rallying to an ATH of $0.74.  

LISTEN: Elon Musk explains how the Department of Government Efficiency (DOGE) will give power back to the people:

“They seem to forget the money being spent is YOUR MONEY and if it’s not being spent in a way that’s beneficial to the American people, it’s a misuse of funds.” pic.twitter.com/hmu2ZuRlbn

— Benny Johnson (@bennyjohnson) October 17, 2024

Another potential reason behind Doge’s surge is the overall bullish momentum of the crypto market. Some people believe the positive trend is due to the Uptober effect.

Whale transactions have spiked by 1,645%, and the open interest of $DOGE rose by $758.5 million as reported by Coinalyze. As recently as yesterday, October 16, on-chain monitors also noted a whale who transferred 86,873,841 $DOGE from Robinhood to an unknown wallet, which is expected to reduce selling pressure on the memecoin. 

Crypto Twitter is extremely bullish on Dogecoin. The memecoin is trending with more than 29.1k posts. X user @thedogecoach said, “Pumping #doge before the elections is a great reminder of why we need D.O.G.E.” Another X user named @CryptoHodlDoge believes that Dogecoin will hit the $1 point by year-end.