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Dogecoin price now appears to have been reached established support around $0.17, after bouncing just below it over the past 24 hours. Once the $0.17 price level is breached, the next step is a convincing break above $0.18. Interestingly, technical analysis of Dogecoin price suggests a strong multi-year resistance level between $0.18 and $0.20.
Technical analysis using Elliot waves suggests that a break above resistance levels could pave the way for a high of $2.4. Although this goal may seem ambitious, Dogecoin has attracted new popularity and recent price increaseswhich reflect its ability to capture the interest of investors. This is especially evident in the recent actions of billionaire Elon Musk, who brought Dogecoin into the mainstream debate.
Crypto Analyst Says Dogecoin at $2.4, Elon Musk is a Huge Factor
Aside from the recent broader crypto price rally led by Bitcoin, it is evident that Dogecoin’s current performance has also been boosted by Elon Musk and his “Department of Government Efficiency.”
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According to an analysis By an analyst who goes by the name @HovWaves on social media platform X, Dogecoin is primed for an upside to $2.4. As you can imagine, reaching this level would require Dogecoin to attract investment flows from all corners of the investor cohorts. Fortunately, recent events have been bringing increased attention to Dogecoin, one of which is the presidential election campaigns in the United States.
The campaigns saw the introduction of Elon Musk’s Department of Government Effectiveness, which is a campaign tactic by Republican candidate Donald Trump to cut $2 trillion in federal spending. Although seemingly unrelated to cryptocurrencies, the term has caused a stir among Dogecoin investors, especially since it is abbreviated to DOGE, the Dogecoin ticker. Interestingly, Elon Musk fueled this narrative among Dogecoin investors by recent post a photo of him next to the Dogecoin avatar.
As HovWaves noted, all the talk around the Department of Government Efficiency has made DOGE a household name in recent weeks. This renewed interest is reflected in the price of Dogecoin, which has increased by 60% since October 1.
Dogecoin’s timetable to reach $2.4
According to technical analysis using Elliot Wave theory, Dogecoin is currently on the third impulse wave, a phase known to be massively bullish. This uptrend has seen Dogecoin on the verge of overtaking a major level of resistance, which HovWaves highlighted as being just below $0.18.
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A successful breakout of the resistance level would pave the way for Dogecoin to retest its 2024 high of $0.22. A subsequent break above this high would propel it towards its all-time high of $0.73 in May 2021. With enough momentum, HovWaves predicted that Dogecoin would eventually settle at a price target in the confluence zone from $1.9 to $2.9 by July 2025.
At the time of writing, Dogecoin is trading at $0.1725. A breakout towards $1.9 and $2.9 would reflect gains of 1,000% and 1,585%, respectively.
Featured image created with Dall.E, chart from Tradingview.com
