Don’t look now, but Dogecoin is up another 20% today

Meme crypto Dogecoin (CRYPTO: DOGE) was clearly one of the biggest winners from this year’s incredible rally. When I started writing this article, Dogecoin was up 20% over the last day. However, Dogecoin is up 23.6% in the last 24 hours as of 1:45 p.m. ET, bringing this token’s one-week gains to over 120%.

This is definitely something you should pay attention to, whether you are a crypto enthusiast or not.

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Then of course the question becomes whether this rally makes any sense at all or whether today’s move in this dog-inspired cryptocurrency makes little sense. Let’s take a look at the key drivers of today’s price action and where Dogecoin could go from here.

The narrative around many asset classes has certainly been boosted by the recent Republican political victory in the White House and Senate and is also likely to result in control of the House of Representatives. However, some assets tied to President-elect Donald Trump (and Elon Musk, who appeared at several rallies in support of the former president in his re-election bid) have outperformed others.

Dogecoin received its most recent boost this year from comments from Elon Musk that he would seek to establish the Department of Government Efficiency (DOGE) in some capacity within the new administration to help Trump cut costs. This allusion to Dogecoin, one of many from the Tesla CEO, led to an initial surge earlier this year, giving the meme token a boost among fans who expected to hear more from Elon about the token if Donald Trump won the election.

Investors can definitely rely on Musk to speak his mind. His support for Dogecoin appears to remain strong, although exact details of how many tokens he may own are unknown. But like many assets that are increasing in value solely due to government changes in the US, Dogecoin is clearly confident in this victory as its token has more than doubled since the election.

This rapid rally was definitely worth seeing and even more astonishing when you consider that there has been little profit-taking since the election. Shares of Tesla stock fell about 6% in intraday trading today as investors appeared eager to take some profits ahead of a possible period of consolidation. But one thing is well-documented about crypto investors (and speculators): the momentum can provide significant tailwinds that can last for a while. Therefore, many investors may feel that it is now too early to make bullish bets on the top meme token.

The story continues