Dogecoin Eyes 25% Price Gains Amid ‘Trump Pump’ Euphoria

Dogecoin (DOGE) is gearing up for a potential 25% rally in the coming weeks, driven by two exciting developments: Donald Trump’s highly anticipated keynote at the Bitcoin 2024 conference on July 27 and a promising inverse head-and-shoulders breakout on the technical charts.

The Ongoing ‘Trump Pump’ Sentiment Boosts DOGE’s Bullish Prospects

The buzz around Donald Trump’s upcoming keynote at the Bitcoin 2024 conference is building, with many speculating that he may announce a groundbreaking Bitcoin reserve strategy for the US if he secures the presidential election in November.

Trump has previously demonstrated a strong inclination towards the crypto industry, and his endorsement could serve as a significant market mover. Crypto bulls have improved their bullish outlook, as a result, believing Trump has better odds of winning the US presidential race due, primarily due to Joe Biden’s recent withdrawal from the contest.

Dogecoin, the topmost memecoin by market capitalization, is well-positioned to capitalize on this momentum, a sentiment furthered by the market’s growing risk appetite due to rate cut anticipations in September.

The memecoin has jumped by over 25% since the assassination attempt on Trump on July 13.

DOGE’s Bullish Reversal Breakout is Underway

On the technical front, Dogecoin is showing a bullish inverse head-and-shoulders (IH&S) pattern, a classic reversal setup that signals the end of a downtrend and the start of a new upward trajectory.

The IH&S pattern is characterized by three distinct troughs, with the middle one being the lowest (the head) and the two outside ones (the shoulders) being higher and roughly equal.

Meanwhile, it resolves when the price breaks above the common resistance line, called the neckline and rises by as much as the maximum distance between the head’s deepest trough and the neckline.

Earlier this week, Dogecoin broke above the neckline around $0.13, indicating a potential price target of approximately $0.175—a 25% increase from current levels.

Conversely, if Dogecoin experiences a pullback from its current price levels, it could see its price retest the neckline resistance as a support level. This scenario is typical in technical analysis, indicating that traders are looking for additional confirmation of the IH&S breakout before committing to further bullish positions.