Dogecoin price forecast: 307,000 new users buy DOGE in 10-days as Trump era begins

Dogecoin price analysis: 

Dogecoin price opened trading at $0.38 on November 22, down 12% from its 3-year peak of $0.43 recorded on November 12. Despite the weakening price momentum, on-chain data trends show an unusually high number of new users buying DOGE in the last 10-days, following Trump’s recent statements.

Dogecoin enters 10-day consolidation after 185% rally

As the crypto market entered a multi-week rally after Trump’s re-election on Nov 5, Dogecoin emerged the biggest gainer among the top 10 ranked cryptocurrency  assets.

The DOGE rally peaked on November 12 when Trump officially confirmed that Elon Musk to lead the newly-created Department of Government Efficiency (D.O.G.E) dept.

“These two wonderful Americans [Elon Musk and Vivek Ramaswamy] will pave the way for my Administration to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies.”

– Donald Trump, November 12, 2024.

Crypto enthusiasts considered the D.O.G.E acronym an an apparent nod to the Dogecoin community, which Elon Musk has been a vocal fan, in recent years. Consequently, Dogeprice skyrocketed to 3-year top within hours after Trump issued the official statement.

But since then post-election market frenzy peaked for DOGE. As traders cashed in on their triple digit monthly timeframe gains, Dogecoin price plunged into a sharp 10-day correction phase.

DOGEUSD daily chart above shows how Dogecoin raced into a blistering 185% rally after Trump’s re-election, moving from $0.16 on November 4 to hit a 3-year peak of $0.44 on November 12. But as trader began booking profits, DOGE price has since decoupled from the broader crypto market uptrend in the past week.

At press time on November 22, Dogecoin opened trading at $0.38, reflecting a 12.67% decline from the 3-year peak recorded last week.

Dogecoin pulls 307,000 new buyers in 5-days as total holders cross 7 million

Despite the 10-day long consolidation phase between Nov 12 and Nov 22, Dogecoin has continued to attract demand, particularly from new market entrant.

Confirming this narrative, on-chain data trends shows that an unusual amount on first time buyers acquiring DOGE since Trump issued the D.O.G.E confirmation statement on November 12.

Santiment’s Total Holder metric tracks daily changes in the number of unique addresses that have acquired a specific cryptocurrency. This serves as a proxy for monitoring the rate at which new users are buying the underlying asset.

As seen above the only 6.7 million addresses held DOGE at close of November 12. But since then that figure has been on a steady rise. At the time of publication on November 22, the total DOGE holder count has reach 7.07 million address, signaling that 307,000 new wallets bought DOGE in the last 10 days.

This implies that Trump’s D.O.G.E confirmation on November 12, enhanced the Dogecoin’s perceived legitimacy and popularity. Consequently, the

Typically, such a dramatic increase in new DOGE wallets flashes bullish signals for a two vital reasons.

• Increased Adoption and Network Growth
  The addition of 307,0000 new addresses within a short 10-day span highlights a surge in retail interest. This indicates that Dogecoin is gaining traction among new investors, possibly spurred by Trump’s D.O.G.E confirmation.

Such network growth often correlates with higher transaction volumes and greater long-term confidence in the asset, reinforcing its utility and adoption.

• Stronger momentum during next breakout attempt
  Such a large influx of new Dogecoin wallets during a consolidation phase reflects that owners of 370,000 new buying wallets capitalized on the consolidation phase to buy more DOGE. This network growth could strengthen the momentum during the next price breakout attempt.

Dogecoin price forecast: Renewed momentum could spark $0.56 rally

After a 10-day consollidation Dogecoin price has now above its Volume Weighted Average Price (VWAP) level of $0.39, signaling strong bullish momentum.

Additionally, the Bull Bear Power (BBP) indicator has shifted into positive territory, suggesting increasing buying pressure during the ongoing consolidation phase. Both indicators are reinforcing the potential for a short-term bullish breakout.

If Dogecoin maintains its position above the $0.39 VWAP, the next significant resistance level to watch is $0.45. A sustained rally beyond this threshold could target the $0.56 level, a key psychological and technical barrier. This aligns with Dogecoin’s historical tendency for sharp upward movements when network growth surges, as seen with the recent addition of 370,000 new wallets in the last 10-days.

However, if DOGE closes below the VWAP support at $0.39, it may invalidate the bullish outlook. In this scenario, the next bearish support level could be around $0.32. A breakdown below this level might lead to a prolonged consolidation phase.