Dogecoin Breakout Incoming? How Trump’s Inauguration Could Influence DOGE

• Dogecoin (DOGE) is expected to breach a crucial resistance range to set a new all-time-high price as the US presidential inauguration nears. 
• An analyst has predicted that DOGE could hit $20 this cycle by imitating the 2017 and 2021 bull cycles.

Dogecoin (DOGE) is showing signs of breakout as it steadily takes a rebound from the $0.26 monthly support to hit a 24-hour high of $0.36.

At press time, the asset had printed a 4.7% surge on its 24-hour price chart to extend its 90-day gains to 198%. Also, it had cemented its dominance as the largest meme coin with a market cap of $53 billion; meanwhile, its 24-hour trading volume had taken a nosedive to $53 billion after falling by 15.5%. However, analysts expect the asset to make a significant bounce back amid the much-anticipated inauguration of Donald Trump as the US president. [mcrypto id=”630826″]

Pending this “big day,” Open Interest (OI) in DOGE futures has recorded a massive jump to $570 million in just three days. According to data, this has taken the total to more than $3.81 billion. Comparatively, the OI’s three-day surge represents a 15% increase against the 10% surge in the spot markets. Per our analyst’s interpretation, this signifies an increasing upside expectation by traders as whales aggressively accumulate the asset, per a CNF report.

Confirming this bullish signal with the Volume-Weighted Average Price (VWAP), we found that DOGE currently trades above this crucial technical indicator at $0.3516. Most importantly, there is a steady inflow as indicated by the Accumulation/Distribution Line, which currently reads 1,573.

DOGE Price Analysis

Subjecting DOGE to a critical technical analysis, CNF observed that there has been a massive positive momentum above the 100-hourly simple moving average. Technically, this implies that the previous resistance level of $0.350 has now been turned into a crucial support after breaching the negative trend line at $0.3350, as earlier highlighted by CNF in a report.

Meanwhile, the Relative Strength Index (RSI) also shows a reading above the neutral level, with the Moving Average Convergence Divergence (MACD) confirming the same trend.

According to our findings, the immediate psychological range of DOGE is found at the $0.3650 and $0.3800 zones. A breakout above this line could see the asset breaking its 2024 high of $0.48. However, a decline below its $0.35 – $0.33 support range could also see the asset retesting its monthly low at $0.29.

Joining the DOGE discussion, a renowned analyst identified as Javon Marks believes that $1-$3 price targets are mere conservative estimates. Per his assessment, the asset could hit $20 this cycle. Fascinatingly, most DOGE enthusiasts believe that $20 is achievable looking at its performance in the previous cycle. In 2027, DOGE recorded a 90x, and in 2021, it made a whopping 306x.

For crypto analyst Cephii, DOGE has the potential to rise by 1,100% in the near term. As featured by CNF in a news piece, the analyst pointed out the previous effect of the 2021 US presidential inauguration on the DOGE price. According to him, the price surged from $0.006583 to $0.07291 in one week. If a similar movement occurs, DOGE could hit a new all-time-high price.