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Elon Musk’s latest government role could give Dogecoin (DOGE) an unexpected push toward the long-desired $1 mark. His appointment as head of the Department of Government Efficiency (DOGE) under Donald Trump’s new administration has captivated Dogecoin fans and crypto analysts. Musk’s influence in this government role has sparked a strong sentiment for a price surge, with Dogecoin jumping 8% overnight following Trump’s election win.
This appointment connects two of Musk’s most prominent interests, cryptocurrency and government reform. His official position adds new weight to Dogecoin’s narrative, suggesting DOGE might transcend meme status. Musk’s reputation for moving markets is now fortified by his political standing, setting up Dogecoin for potential price highs. Notably, analyst Mags predicts Dogecoin to have a conservative target of $1.17.
Musk’s Influence on Dogecoin’s Price Outlook
Musk’s support for Dogecoin has consistently attracted public attention and driven DOGE’s price action. However, with his government role, his influence has grown even more significant. Dogecoin’s historical price patterns, marked by parabolic rises and sharp declines, reveal the cryptocurrency’s sensitivity to market catalysts. In early 2021, for instance, Dogecoin surged from $0.01 to $0.70, fueled by Musk’s vocal support and retail demand.
$DOGE pump will melt faces.
— Mags (@thescalpingpro) November 9, 2024
Last cycle, I shared Dogecoin before it went up by 170x.
This time, I’m targeting $1.17 – 8x (conservative target)
We are in a memecoin supercycle, and you really think DOGE won’t hit at least $1? https://t.co/2e2PE6ahAX pic.twitter.com/ztP1Ue2XfD
Analyst Mags believes Dogecoin is entering a “memecoin supercycle” and anticipates an 8x gain from current levels. Besides, Mags views the current price near $0.14 as a strategic entry point for long-term gains. However, DOGE’s past parabolic rise and steep decline underscore the risks for investors hoping for a similar surge.
Technical Indicators Suggest Possible Breakout for Dogecoin
The technical chart for Dogecoin indicates that a turning point is near. The price appears to be breaking out following a protracted period of consolidation from 2022 to 2024. In 2024, a “test pump” suggested positive momentum but was not maintained, indicating market hesitancy. Consequently, a breakout above the resistance level of $1.17 could trigger substantial gains, especially with Musk’s heightened role.
Musk’s position in the DOGE commission, coupled with market optimism, could be the catalyst Dogecoin needs. Additionally, his extensive public reach and influence over retail investors align with a favorable backdrop for DOGE’s future. While speculative, his role adds a distinct political element to Dogecoin’s trajectory, potentially increasing DOGE’s appeal and market resilience.