Dogecoin has become a hot topic of discussion, particularly amidst a sudden surge of meme coins related to the resurgence of Donald Trump. Santiment, an on-chain analysis firm, recently highlighted in a sentiment dashboard that the focus has shifted towards meme coins following the “historic US inauguration of Donald Trump.”
In a recent update from Santiment, it is pointed out that discussions about “TRUMP” have intensified after its controversial listing on Coinbase, warning about the risks associated with investing in a volatile market. Notably, there is noteworthy interest in airdrops of ‘TRUMP’ tokens, with a recent event securing tokens worth $1M.
MELANIA, another meme coin connected to the Trump brand, fluctuated in value, briefly surpassing a $9 billion valuation amidst broader market uncertainties.
Meanwhile, Santiment attributes Dogecoin’s spike in social media mentions to the establishment of the US Department of Government Efficiency (DOGE) led by Elon Musk, utilizing Dogecoin as its emblem. The US Government officially launched the Department of Government Efficiency (DOGE) website on January 21, featuring the Dogecoin logo.
This initiative has sparked conversations by merging cryptocurrency with governmental operations, creating a buzz on social media. Furthermore, speculations surrounding potential new meme coins related to public figures like Trump and Musk add to the anticipation regarding Dogecoin’s future performance in the crypto market, according to Santiment.
Despite the recent focus on TRUMP and MELANIA, Santiment’s analysis indicates mixed sentiments towards both tokens. Regarding TRUMP, Santiment states: “The word ‘trump’ is trending due to discussions about the Trump Coin. Price fluctuations and the speculative nature of meme coins have sparked debates on the risks of investing in Trump Coin.”
Santiment’s positive outlook highlights “political influence and executive actions” as reasons for optimism, noting that “the expectation of a crypto executive order from Trump has excited investors.”
MELANIA’s sentiment also diverges between bullish and bearish viewpoints, with concerns raised about a more than 70% drop from its peak price, while endorsements from Donald and Melania Trump are seen as potential drivers of renewed interest.
Technical Analysis: DOGE Breakout Confirmation
Currently, Dogecoin (DOGE) is trading around $0.367 after breaking out from a descending trendline dating back to early December. The successful retest of the trendline as support confirms the breakout above the diagonal resistance earlier this week.
Following the retest, DOGE faces the 0.5 Fibonacci retracement level at $0.3943 as a significant resistance. A clear break above this level could pave the way for higher levels at the 0.618 Fib level at $0.4759 and the 0.786 Fib at $0.5920.
On the downside, if DOGE fails to surpass the 0.5 Fib, the 0.382 Fib at $0.3129 might serve as reliable support. The Relative Strength Index (RSI) around 51 indicates neutral momentum, leaving room for potential movements in either direction.
