Signs Of A Major Breakout Emerge
Even amid a sudden wave of meme coins as Donald Trump returns to the spotlight, Dogecoin has become a centerpiece of conversation. On-chain analytics firm Santiment recently shared a sentiment dashboard on
in their latest postalSantiment emphasizes “trump card People are discussing the ‘Trump’ coin airdrop, and the risks involved in investing in volatile markets, following controversial listing on Coinbase, while ‘People are concerned about the ‘Trump’ coin airdrop There was also a lot of interest, and one of the notable events was the acquisition of $1 million worth of tokens. “
MELANIA, another meme coin associated with the Trump brand, made waves when its valuation briefly exceeded $9 billion, although it “experienced significant volatility amid broader market uncertainty.”
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Meanwhile, Santiment attributes Dogecoin’s surge in social media mentions to the newly formed U.S. government efficiency department (DOGE) is led by Elon Musk and the project uses Dogecoin as its avatar. On January 21, the U.S. government officially launched the Department of Government Efficiency (DOGE) website, which has the official Dogecoin logo.
“The move has sparked discussion on social media as it intertwines cryptocurrencies with government operations. Additionally, there has been controversy surrounding the potential of new meme coins associated with public figures such as Trump and Musk. The discussion also sparked speculation about Dogecoin’s future performance and relevance in the crypto space,” Santiment wrote.
Despite the sudden spotlight on Trump and Melania, Santiment’s meltdown highlights the mixed feelings about the two coins. Regarding Trump, the post states: “The word ‘Trump’ is trending due to discussions about Trump coins. Its price fluctuates, as well as the speculative nature of the meme coin, and users are debating investing in Trump coins risk.”
Santiment’s “positive” analysis points to “political fallout and executive action” as reasons for optimism, stressing that “anticipations of Trump’s executive order on cryptocurrencies are causing investor excitement.”
Related Reading: Will Dogecoin Surge Soon? The chart pattern indicates that it is
MelaniaSentiment is similarly divided between bullish and bearish, with negative views seeing the price down more than 70% from its initial peak, while bullish views see Donald Trump and Melania Trump’s “celebrity endorsements” as Potential impetus for renewed interest.
Technical Analysis: DOGE confirms breakout
At press time, Dogecoin (DOGE) was trading around $0.367 after bouncing off its descending trendline in early December. A break above diagonal resistance earlier this week was followed by a successful retest of the trendline yesterday, confirming it as new support.
After a retest, DOGE is now competing with the 0.5 Fibonacci retracement level at $0.3943, which marks the next major overhead barrier. A clear break above this resistance could open the door to higher 0.618 Fib level ($0.4759) and 0.786 Fib level ($0.5920).
On the downside, if DOGE fails to break above 0.5 Fib, $0.382 Fib $0.3129 may be the most reliable support. Meanwhile, the Relative Strength Index (RSI) remains neutral at around 51, reflecting balanced momentum and leaving room for a potential continuation on both sides.
Featured image created using DALL.E, chart from TradingView.com
