While the broader cryptocurrency market is experiencing a slight downturn ahead of today’s US presidential election, Dogecoin (DOGE) has bucked the trend, rising 10% in the last 24 hours. Over the past three days, the DOGE Index is up more than 20% from Sunday’s local low of $0.14219. Analysts attribute this unusual result to speculation about the election and its potential impact on Dogecoin.

Why is the price of Dogecoin rising today?

Several cryptocurrency analysts have identified Dogecoin as the leading “Trump trade” in the cryptocurrency market – a proxy way to bet on Donald Trump winning the presidential election. The association stems from Elon Musk’s proposal to run a “Department of Government Efficiency” (DOGE) under the Trump administration to reduce government spending.

Russian Market (@runews) suggested that if Trump wins, “Elon Musk will be given a role in the White House, potentially making Dogecoin one of the ‘official’ cryptocurrencies.” This speculation is considered to be one of the reasons why Dogecoin is rising even as Bitcoin faces a decline.

Mammon (@D_DTRADING) also highlighted Dogecoin’s robust performance, arguing that Dogecoin could have become a leveraged bet on Trump’s victory. “Dogecoin is showing great relative strength and, imo, it has to do with Elon’s commitment to supporting Trump. Where Dogecoin could become a leveraged bet on Trump winning. Trump Victory > Doge to the Moon?” He he noticed.

Miles Deutscher highlighted Dogecoin’s role as a catalyst in the cryptocurrency market: “DOGE pumps (DOGE initiative will fuel DOGE+ is already showing strength as a proxy). DOGE as a meme leader will also bring attention and fluidity rotation to the broader meme narrative. Think of it as the spark that ignites a fire.

Former investment bank trader Pablo Heman (@RealPabloHeman) noted that “DOGE is the only green currency in a sea of ​​red cryptocurrencies,” suggesting a correlation between Dogecoin’s performance and political developments.

He he noticed: “The surveys are misleading and contradictory, and in fact they are FALSE! But the market doesn’t lie! There is a clear delayed rally in DJT stock, aka Trump stock, which is now forming a bullish engulfing pattern from yesterday’s red bar. […] And also DOGE is the only green one in a sea of ​​red cryptocurrencies. So remember that Trump = DJT and Elon Musk = DOGE.

Andrea Capellini, founder of Freedom Trading Academy, expressed bullish sentiment on Dogecoin’s potential, suggesting that a win for Trump and Elon could push DOGE down to $0.47. Technical Capellini analysis highlights the key Fibonacci retracement levels used from the low at $0.05237 to the recent high at $0.59546.

It is worth noting that Dogecoin price is currently testing the resistance zone just below the 23.6% level at $0.21544. Breaking this resistance could pave the way to Capellini’s target of $0.47. The relative strength index, the momentum oscillator, is 62.72, which puts it in the upper neutral zone. This reading indicates increasing momentum, without entering the overbought area (above 70) yet. The current RSI level supports cautiously hopeful prospects for the continuation of the upward trend.

Moreover, Dogecoin’s weekly chart shows a bullish pattern characterized by a series of higher lows and higher highs – a classic sign of a sustained uptrend. However, DOGE is currently facing a downtrend line that has previously acted as resistance. A decisive break above this line is key to achieving higher price targets, including Capellini’s forecast of $0.47.

At press time, DOGE was trading at $0.16816.

Featured image created with DALL.E, chart from TradingView.com