Key Insights
- Dogecoin jumped strongly this week, after the launch of the newly created US government agency.
- The Department of Government Efficiency (DOGE) also launched its website featuring the DOGE logo.
- This has caused Dogecoin to make another attempt at the $0.4 price level.
- Even though the cryptocurrency has cooled down to the $0.36 price level, price targets include anywhere between $0.57 to $1 or beyond for this cycle.
Dogecoin is back in the spotlight once again, with its dramatic 13% surge in under 15 minutes this week.
This price increase came from the launch of the official Department of Government Efficiency (D.O.G.E) website, which has sparked renewed interest in the dog-themed cryptocurrency.
Even though Dogecoin has cooled off over the last 24 hours, here’s what’s going on with it now and in the possible future.
A Government Website Sparks Excitement
The Department of Government Efficiency (D.O.G.E), the newly created department in the US government recently unveiled its official website this week.
The new department of government efficiency
This was particularly bullish for Dogecoin, not only because of the department’s name, it was also bullish because the website prominently featured the Dogecoin logo.
This department is also helmed by Tesla CEO Elon Musk, who is a known Dogecoin supporter.
The department’s main aim has been described as “modernizing federal operations, reducing wasteful spending and improving technology infrastructure—among other things.
However, the coincidental naming has always sparked some form of a reaction for Dogecoin, especially with its highly engaged community and the broader community.
Soon after this website launch, Dogecoin catapulted itself from an intraday low of $0.33 to a new high of $0.4.
DOGE Breaks Out of Downtrend
According to data from CoinMarketCap, Dogecoin has cooled down again, and now trades around the $3.6 price level.
The cryptocurrency hit an intra-day low of $0.33 on January and is now doing well for itself by trading above the 50-day Simple Moving Average (SMA) at $0.36.
According to insights from the charts, if Dogecoin sustains this momentum, it could skyrocket upwards once again, and even hit key resistance levels at $0.434 and $0.48.
However, the charts also show that a failure to sustain itself above the SMA could trigger a pullback towards the $0.27 price level, which is a mixed short-term outlook.
The daily chart shows an RSI reading of 32, however, and investors should approach Dogecoin with caution.
Ultimately, Dogecoin could be set to hit a market peak of $1, especially in this cycle.
While the cryptocurrency’s current price is still far below its $0.73 all time high, its resilience and its relation to this newly created government agency could put potential targets of $0.48, $0.57, and $0.66 in its path over the near term, along with an ultimate $1 price tag for the cryptocurrency In this cycle.