Doge Day, Elon Musk and Everything That Has Pushed Dogecoin Up by 10%

Dogecoin (DOGE) has surged by 10% in the past 24 hours, emerging as the top performer among the top 10 cryptocurrencies. This rally follows the November 2 Doge Day celebration, which honored Kabosu, the Shiba Inu behind the original meme and a nod to Elon Musks influence on Dogecoin.

This price spike echoes last year‘s Doge Day rally, though the celebration alone isn’t driving DOGE‘s recent gains. This analysis examines the key catalysts behind Dogecoin’s upward trend and explores what may lie ahead for the popular cryptocurrency.

Dogecoin Has Elon Musk and Doge Day to Thank

A month ago, Dogecoin was priced at $0.10, but today, it trades at $0.17 — a 55% increase over the past 30 days. Several factors contribute to this notable surge.

The primary catalyst appears to be the traditional Doge Day celebration pump, with the Dogecoin community recently adopting a second Doge Day celebration in Q4 since 2023. Additionally, Elon Musks vocal support for US Republican candidate Donald Trump has likely bolstered interest in DOGE, aligning it with the influence Musk holds within the community.

Weeks after the celebration last year, the cryptocurrencys price went from $0.076 to $0.10. Since the price is increasing now and decoupling from the market, it appears that DOGE could be following a similar pattern.

Meanwhile, Musks posts about the proposed Department of Government Efficiency (D.O.G.E) have also positively impacted the price.

On-Chain Metrics Remain Bullish

Following the development, the adjusted price Daily Active Addresses (DAA) divergence has consistently remained positive. This metric measures whether user engagement is solid enough to keep the price going up.

When it is negative, it means the uptrend is weak, and the price can retrace. But since it is positive, Dogecoins price might continue to climb.

Dogecoin Price DAA Divergence. Source: Santiment

Regarding Elon Musk‘s Dogecoin influence and Donald Trump’s potential win, analyst CryptoGodJohn suggests that the meme coin could gain from these developments

In addition, data from IntoTheBlock indicates that Dogecoin has experienced a rise in the number of short-term holders.

“If Trump wins, it seems like DOGE likely is one of the easiest plays if they form the ” Department of Government Efficiency, the analyst wrote on X.

The “Balance By Time Held” metric revealed that the count of investors holding DOGE within the past 30 days has increased compared to those who have held the asset over the past year. This shift suggests heightened interest and trading activity among newer market participants, potentially contributing to the recent price hike.

Dogecoin Balance By Time Held. Source: IntoTheBlock

DOGE Price Prediction: Higher Highs

Similar to BeInCryptos earlier analysis, Dogecoin has been forming a bullish flag pattern. This technical pattern often signals a continuation of an upward trend after a brief consolidation phase.

If confirmed, the bullish flag could indicate that DOGE‘s price is preparing for another surge, potentially driven by the recent catalysts mentioned above. Should that be the case, Dogecoin’s price might increase by 30% and hit $0.19 from the recent local bottom at $0.15.

Dogecoin 4-Hour Analysis. Source: TradingView

On the other hand, external factors like a loss for Donald Trump could trigger a sell-off as Elon Musks Dogecoin impact might not be able to help the coin keep its strength. In that scenario, the price might drop to $0.17.