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Why is Dogecoin price up today?

Dogecoin (DOGE $0.1422) has outperformed most of its top-ranking crypto rivals following the mention of its official ticker at the recent Donald Trump rally in New York.

D.O.G.E. pumps DOGE price

Dogecoin price has rallied by approximately 7% in the last 24 hours to reach $0.145 on Oct. 28.

Chart

DOGE/USD hourly price chart. Source: TradingView

The gains came after billionaire entrepreneur Elon Musk announced his ambitious plan to save American taxpayers $2 trillion through the "Department of Government Efficiency"—a concept he devised to streamline government operations, cut waste, and reduce costs.

Notably, the initiative's initials, D.O.G.E., align with the ticker of Musk’s “favorite cryptocurrency” Dogecoin. That has triggered buying sentiment in the Dogecoin market, reminiscent of a similar rally triggered by Musk's mention of D.O.G.E. back on Oct. 15.

Related: Elon Musk discusses DOGE cabinet position, economics at Trump rally

Musk, the self-styled "Dogefather," has a well-documented history of influencing Dogecoin's price through his tweets and public comments, including DOGE's staggering 64,000% surge between March 2020 and May 2021.

His large following of retail investors frequently interprets his remarks as unofficial endorsements, sparking price surges like the current rally.

Dogecoin “golden cross” comes into play

Dogecoin’s gains today are part of a 14.65% rebound that follows the formation of a golden cross on its daily chart.

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.

Chart

DOGE/USD daily price chart. Source: TradingView

Dogecoin printed the same pattern when its 50-day EMA (the red wave) jumped above its 200-day EMA (the blue wave) on Oct. 25.

Traders and analysts view this crossover as a positive signal, suggesting a shift in momentum from bearish to bullish.

As of Oct. 28, DOGE was stabilizing above its 0.382 Fibonacci retracement line at around $0.141, which served as a key resistance line in July. The ability to hold above the said support level could decided the next directional bias for Dogecoin price.

That said, sustaining above $0.141 could have DOGE traders eye the $0.156 and 0.171 area, coinciding with the 0.5 Fib and 0.618 Fib retracement levels, respectively, in November.

Conversely, a breakdown below $0.141 risks sending Dogecoin price toward its prevailing ascending trendline support at around $0.122  

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Cointelegraph Team

Cointelegraph Team

Cointelegraph

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