Dogecoin (DOGE) Hit a New Record in October, but What to Expect Next?

Dogecoin recorded an impressive +27% over the past week, becoming the best performer among meme tokens in the top ten cryptocurrencies. Currently priced at $0.1470, the token has benefited from a rally that has pushed it to a +94% gain since the beginning of August 2024, solidifying its position as the second-best performing cryptocurrency on a weekly basis among major projects.

Dogecoin’s Recent Performance

• Daily Rally: +2.9%
• Weekly Growth: +32.6%
• 14-day Increase: +27.3%
• Monthly Growth: +38.4%

This Dogecoin rally seems driven not only by market dynamics but also by external factors, such as the influence of Elon Musk, a well-known supporter of the cryptocurrency. Musk's recent participation at a pro-Trump event and the creation of the "Department of Government Efficiency" (DOGE), a play on words that caught investors' attention, may have contributed to this momentum.

Short-Term Forecasts 

Despite the overall optimism, some analysts predict an imminent correction. The CoinCodex platform estimates a possible retracement to $0.127 by October 31, 2024, with a 16.89% decline. Others, such as Changelly, predict a potential drop to $0.104, a 29.7% decrease from current levels.

Future Outlook 

Dogecoin's trajectory could depend on two key factors:

• Market sentiment: while the rally might slow down, Dogecoin could still benefit from speculative waves as the 2024 U.S. presidential elections approach.
• Political influence:  the potential strengthening of Donald Trump's campaign, supported by Musk, could trigger another buying wave for DOGE. However, this connection between cryptocurrencies and politics introduces elements of uncertainty.

In Summary

Dogecoin has once again proven to be a volatile cryptocurrency closely tied to the influence of key personalities. Investors should closely monitor developments in both the market and the political arena to seize potential opportunities.