Dogecoin Up 8% Despite Overall Market Drop Pre-election
- Dogecoin could surge 24% after breaking a descending channel as the large market sees a dip.
- Reports linked the action to other influential factors like Elon Musk’s statements.
- Musk discussed the Department of Government Efficiency, “DOGE,” during a podcast.
The cryptocurrency market faced a notable downturn on November 5, shedding over 2% to settle at $2.38 trillion, according to CoinGecko data. Despite this broader decline, Dogecoin stood out as an exception, capturing attention with gains exceeding 7% on shorter timeframes. This surprising resilience was highlighted by market analyst World Of Charts, who pointed to Dogecoin’s strong performance amid a cautious market landscape.
$Doge #Doge
— World Of Charts (@WorldOfCharts1) November 5, 2024
While Everyone Is Avoiding Trading Due To Us Elections We Are Still Managing Profits On Lower Tfs 7%+ Profit So Far https://t.co/rEZtxXeH5x pic.twitter.com/ULTHYVseQ0
Per his chart, Dogecoin followed a descending channel from October 27 to November 3. This pattern highlighted lower highs and lower lows within a defined range. On November 4, Dogecoin broke above this channel, signaling potential bullish momentum.
Price Spike and Technical Breakout
The breakout led to a notable price increase. Dogecoin moved from around $0.1530 to approximately $0.1679, an 8% rise during this press. Despite this upsurge, the analyst aims at a $0.0379 gain, equating to a 24.14% rise.
The price move attracted attention amid the ongoing U.S. elections. Trading activity was notably lower, but Dogecoin showed resilience.
Musk’s Remarks and Market Reactions
However, reports linked the price action to other influential factors driving interest, such as Elon Musk’s statements. Musk recently appeared on the Joe Rogan Experience podcast. He introduced the concept of the Department of Government Efficiency, abbreviated as “DOGE,” presenting it as a solution to the expanding federal bureaucracy.
Musk mentioned concerns over excessive government control. He warned that overregulation could restrict activities and slow progress. Musk had shared similar views in an earlier interview with Tucker Carlson. He envisioned the DOGE department addressing overreach by discarding unnecessary regulations.
Shiba Inu as DOGE Mascot
Recall, in September, Musk designated the Shiba Inu dog as the mascot for the DOGE department. This decision was consistent with the previous Dogecoin mentions. It triggered topics of debate and possible use of the coin in a community. This is true because remarks made by Musk have influenced Dogecoin’s movement in the past.
In conclusion, these features, together with other technical signals like the breakout of the descending channel indicate Dogecoin’s continuous movement up, while the overall market remains rather conservative. The increase noted by the analysts indicates that hype can be attracted during major events and news.
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