Dogecoin Eyes Another 50% Surge as Trump Taps Musk, Ramaswamy for D.O.G.E.

Dogecoin’s (DOGE) technical indicators suggest another 50% price surge in the coming weeks.

Notably, the top memecoin is forming a classic bullish pattern known as a bull pennant, hinting at continued upward momentum. Its upside outlook aligns with President-elect Donald Trump’s recent announcement appointing tech mogul Elon Musk and entrepreneur Vivek Ramaswamy to lead a new “Department of Government Efficiency” (D.O.G.E.) in his administration.

JUST IN: 🇺🇸 President-elect Trump appoints Elon Musk and Vivek Ramaswamy to lead Department of Government Efficiency (DOGE). pic.twitter.com/WtoLBZSgGM

— Watcher.Guru (@WatcherGuru) November 13, 2024

Dogecoin Technical Analysis: DOGE Enters Bull Pennant Consolidation

On the four-hour chart, Dogecoin is consolidating within a converging triangle pattern that appears like a bull pennant. Notably, bull pennants form after steep price rallies and resolve when the price breaks above the upper trendline and rises by as much as the size of the previous uptrend.

Dogecoin was inching toward the triangle’s apex as of Nov. 13, eyeing a breakout above the upper trendline. If it does, the DOGE price can rise toward $0.595, roughly 50% above the current price levels.

The upside outlook coincides with a surge of interest in crypto assets, led by Bitcoin’s recent rise to its record high of over $90,000.

Trump Adds Musk, Ramaswamy to D.O.G.E. Administration

Dogecoin’s upside prospects have improved further due to Trump’s Nov. 12 announcement that Elon Musk and Vivek Ramaswamy will lead a new “Department of Government Efficiency” in his second administration.

The idea that a government department’s initials align with the DOGE ticker symbol provides a humorous and meme-worthy narrative that aligns with Dogecoin’s identity as the “joke cryptocurrency.” Traders are merely buying into the hype D.O.G.E. agency may create for Dogecoin during the Trump presidency.

pic.twitter.com/4K0ruu7UMS

— Elon Musk (@elonmusk) November 13, 2024

The Dogecoin market has witnessed similar price rallies in the past, namely its 30,000% gains in the 2020-2021 period when Musk was relentlessly tweeting about it.

DOGE Most Overbought Since March 2024

On the other hand, Dogecoin’s sharp gains—around 150% — following Trump’s reelection have led its daily relative strength index (RSI) to its most overbought levels since March 2024.

The last time Dogecoin’s RSI reached these levels, it followed a 40% correction over the following three weeks, reaching the 50-day Exponential Moving Average (50-day EMA, the red wave).

Given the RSI’s overbought condition, a comparable pullback could be expected as traders potentially lock in profits. Traders should monitor support levels, particularly around the 50-day EMA at around $0.174, for signs of stabilization or potential reversal following any decline.