Dogecoin shot up by 13% in just 15 minutes after the US Government Efficiency Department, known as DOGE, launched its official website. This surge marked a turnaround from its recent downward trend. The boost in price came as news spread about the agency led by Elon Musk, which aims to cut government spending and simplify regulations. The website went live on January 21.
The site features the Dogecoin logo right at the center. As a ".gov" site, it claims to be the official platform of the US government. It also displays the department’s name, a dollar sign, and the slogan, “The people voted for major reform.”
In his inauguration speech, President Donald Trump mentioned that his administration would create the Department of Government Efficiency to bring back competence and effectiveness to the federal government. Shortly after, he signed an executive order to officially establish the department.
Before the website launched, DOGE’s price had dropped by as much as 10% that day. However, it quickly reversed course, rising 20% from an intraday low of $0.33 on January 15 to a high of $0.40. Another token with a similar name, the Department Of Government Efficiency (dogegov.com) (DOGE), also saw a significant increase, rising 35% in the last 24 hours.
Analysts believe this event boosts Dogecoin’s visibility and perceived value. Using the Dogecoin logo on such an official platform adds legitimacy, even if it’s all in good fun. Social media played a big role, too, as users shared their surprise and amusement, helping the news go viral.
Trader Cas Abbe reacted to the website launch, saying, “@DOGE official website is now live. It’s using the $DOGE logo on their website.” He added, “The US government is now officially shilling memecoins, and you still think a memecoin supercycle won’t happen?”
Crypto YouTuber CryptoRover echoed similar thoughts, saying, “The memecoin madness continues. This will be the biggest bull market of our lives.”
Since early November 2024, Dogecoin has been a hot topic for speculative trading. The price action and technical setup suggest a potential upward movement. The chart indicates an upcoming breakout from a bull flag, which could lead to a significant price increase.
A bull flag is a bullish continuation pattern that forms after the price consolidates within a downward range following a sharp increase. This pattern is expected to resolve when the price breaks above the upper trendline at $0.37, possibly rising as high as the previous uptrend's height. This sets a target for DOGE at $1.61, representing a 340% increase.
The weekly relative strength index (RSI) for DOGE is still positive at 62, suggesting market conditions favor further growth. Technical analyst Trader Tardigrade noted, “Dogecoin is breaking out of a trendline, and the RSI shows corresponding bullish momentum” in response to DOGE’s recent price action.
This article does not offer investment advice or recommendations. All investments come with risks, so readers should do their own research before making any decisions.