As we edge closer to Donald Trump’s inauguration on January 20, 2025, the cryptocurrency market, particularly Dogecoin (DOGE), is buzzing with speculation and anticipation.
The recent CPI report for December 2024, showing an inflation increase of 2.9%, has already set a bullish tone in the market, with Bitcoin (BTC) briefly crossing the $100,000 mark.
However, a question on everyone’s mind is whether DOGE can ride this wave of positive sentiment to reach the coveted $1 price point.
Bullish pennant pattern form on the daily Dogecoin price chart
The current market data paints Dogecoin in a favourable light, with a price of $0.3841 after a 9.15% increase from the previous close and a significant yearly growth of 360.3%.
The memecoin has shown signs of a potential breakout, forming a bullish pennant pattern on its daily chart, as pointed out by crypto expert Jonathan Carter.
This pattern, characterized by a descending resistance and an ascending support line, often signals an impending upward movement.
Currently, DOGE is testing the upper trendline of this pennant at around $0.37, a critical resistance level.
If it manages to break out, Carter predicts the price could aim for $0.40, $0.48, or even climb to $0.65, based on historical resistance and Fibonacci retracement levels.
#DOGE
Dogecoin has formed a bullish pennant pattern on the daily chart and is approaching the descending resistance on the daily chart🔍
Price is showing signs of strength and preparing for a potential breakout📈
If breakout is confirmed, expect movement towards targets at…
24
Reply
Copy link
Dogecoin (DOGE) open interest on the rise
The market’s reaction to macroeconomic news isn’t the only catalyst. The open interest in Dogecoin has seen a dramatic increase according to CoinGlass data, reaching $4.68 billion, translating to 12.01 billion DOGE.
Dogecoin open interest chart by CoinGlass
This surge in open interest, the highest since December 2024, indicates that traders are betting heavily on DOGE’s future performance, especially around Trump’s inauguration.
Notably, the exchange Gate has outpaced Binance in terms of DOGE open interest, showcasing a shifting landscape in trading dynamics.
Trump’s perceived pro-crypto stance
Adding to this optimism is Trump’s perceived pro-crypto stance, which could potentially lead to favourable regulations or policies for cryptocurrencies.
Notably, the establishment of the Department of Government Efficiency (D.O.G.E), with Elon Musk at its helm, has fueled speculation about Dogecoin’s growth.
Amid the optimism, companies like VivoPower International PLC through its subsidiary Caret Digital have embarked on Dogecoin mining operations at a hosting facility in Wisconsin, aiming to leverage the current profitability of DOGE mining.
VivoPower’s initiative is part of a broader strategy to generate revenue and free cash flow, with projections of up to $25 million in annual revenue from DOGE mining alone, although these figures are highly speculative given crypto’s volatility.
Caret Digital’s commitment extends beyond DOGE, planning to develop 55MW of renewable-powered mining capacity for both Dogecoin (DOGE) and Litecoin (LTC), potentially pushing annual revenue to $150 million, reflecting a dedication to sustainability alongside profit.
Binance has added DOGE as a Fixed Rate Loan collateral
Moreover, Binance has introduced new features that could indirectly support Dogecoin’s price.
By adding DOGE as a collateral asset for its Fixed Rate Loan service, users can now leverage their Dogecoin holdings for loans, potentially increasing liquidity and investor engagement with the coin.
This move by Binance, alongside the addition of Litecoin and ChainGPT for different loan services, shows a growing infrastructure that might bolster DOGE’s market position.
What are the chances of Dogecoin hitting $1?
While all pointers show Dogecoin is ready for more gains moving into the year, the journey to $1 is fraught with challenges.
Firstly, Dogecoin’s unlimited supply could be a deterrent if not balanced by demand. Secondly, Dogecoin’s historical volatility means that the current bullish trend might not hold.
While there’s palpable excitement around Dogecoin as Trump’s inauguration approaches, Dogecoin’s path to $1 would require not only sustained bullish market sentiment but also a significant increase in demand or a decrease in supply dynamics, neither of which are guaranteed.
The post Can Dogecoin price hit $1 after Donald Trump’s inauguration? appeared first on Invezz
