Dogecoin price held quite steady on Tuesday as it formed several bullish chart patterns ahead of the American election. DOGE token spiked to a high of $0.1700, its highest swing since Thursday last week and a few points below its highest level this month.
Dogecoin price forms bullish patterns
The daily chart shows that Dogecoin, the biggest meme coin in the industry, has formed numerous bullish patterns, pointing to more gains in the coming months.
First, it has formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) have crossed each other. A golden cross is one of the most popular bullish signs in the market.
Second, DOGE also formed a hammer candlestick pattern, which is characterized by a big red body and a long shadow. A hammer is also a popular reversal pattern that is followed by a strong rebound.
Third, and most importantly, Dogecoin has formed a cup and handle pattern, which is made up of a rounded bottom and some consolidation at the top. It is now at the handle section of this pattern.
Dogecoin has also moved to the strong pivot reverse pattern of the Murrey Math Lines. It has also jumped above the Ichimoku cloud. Therefore, these patterns point to a potential DOGE price rally in the coming days. If this happens, it will rally to the next point at $0.2290, its highest level this year, which is also 35% above the current level.
DOGE token’s potential catalysts
The biggest potential catalysts for the DOGE price is today’s election in the United States where Donald Trump and Kamala Harris are competing.
Data by Polymarket shows that Trump has widened his lead once again. He now leads by 62% compared to Harris’ 38%.
A Trump victory matters for Dogecoin because Elon Musk is its biggest high-profile supporter who has even made it possible for people to buy Tesla’s accessories using the coin.
Trump has pledged to be a more crypto-friendly president. He has also mentioned Musk as a potential candidate to lead the Department of Government Efficiency, which will be tasked with cutting the government’s costs and boosting its efficiency.
Therefore, if Trump wins, the hype that will emerge may push the Dogecoin price significantly higher than what it is today. However, there is still a risk that Trump will not win. If this happens, the coin will likely suffer a big reversal. The other risk is that traders who bought the coin because of the election hype start to sell, in a process known as buying the rumor and selling the news.
