Why is Dogecoin price up today?

Dogecoin (DOGE), the largest memecoin by market capitalization, has rallied more than 23% in the past 24 hours, emerging as the best crypto market performer amid anticipation surrounding Elon Musk’s support of the memecoin in the Trump administration. 

Currently trading at $0.2771, DOGE has reached its highest value since Oct. 2021, marking an 86% climb over the last seven days and is up 152% over the last month.

DOGE now commands a market capitalization of over $41.2 billion at the time of publication, surpassing USDC’s (USDC) $36.9 billion and XRP’s (XRP) $32.7 billion capitalization to become the sixth-largest crypto by market value.

Pro-crypto Trump’s victory boosts DOGE price

DOGE’s bullish stance coincides with rallies across the crypto market, which sent Bitcoin (BTC) into price discovery, setting a new all-time high above $82,000 on Nov. 11. This comes less than seven days after Donald Trump emerged victorious in the 2024 US presidential election.

DOGE, with its reputation as a community-driven, high-volatility memecoin, is benefiting from renewed trading interest due to the possibility of its abbreviation becoming a part of Donald Trump’s new administration.

While on the campaign trail in support of Trump, Elon Musk proposed the establishment of the “Department of Government Efficiency” aimed at reducing government waste—a concept conveniently abbreviated as D.O.G.E.

This has triggered speculation among traders that there could be more to D.O.G.E. than just an abbreviation for a possible government department, fueling attention and interest in Dogecoin.

DOGE funding rates spike

DOGE’s bullish price action on Nov. 11 is preceded by a jump in open interest-weighted funding rate, suggesting that new capital is entering the market. The chart below shows that DOGE’s 8-hour OI-weighted funding rate increased to 0.0448% on Nov. 11, the highest since June 2024. 

This suggests a high appetite for long positions as DOGE’s price gained around 23% over the last 24 hours.

DOGE’s rally on Nov. 10 was accompanied by short liquidations totaling $37.25 million against $24 in long liquidations. This has resulted in more than $36.4 million short DOGE liquidations over the last 24 hours.

In other words, short traders were caught off-guard by DOGE’s rise to $0.30.

DOGE’s U-shaped pattern points to a rise to $0.37

Dogecoin’s gains today are part of a 259%% rebound from the Aug. 5 lows around $0.080, leading to the formation of a golden cross on its daily chart, recouping all the losses incurred between March 28 and Aug. 5. 

Related: Price analysis 11/8: BTC, ETH, SOL, BNB, XRP, DOGE, TON, ADA, SHIB, AVAX

A golden cross is a bullish technical pattern that occurs when a shorter-term moving average, typically the 50-day moving average (MA), crosses above a longer-term moving average, usually the 200-day MA.

The formation of this bullish signal on Nov. 6 saw DOGE price make a decisive move above the neckline of a U-shaped recovery pattern at $0.228.

A decisive close above the psychological level at $0.30 will likely push DOGE/USD toward the bullish target of the prevailing pattern at $0.377, representing more than 34% gains from the current price.  

Conversely, a retreat from $0.28 could see a retest of the U-shaped neckline at around $0.22.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.