Dogecoin Price Forms Bullish Patterns Ahead of the American Election

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

Dogecoin (DOGE/USD) price held quite steady on Tuesday. The meme coin formed several bullish chart patterns as it rose to $0.1700. This price was the highest since Thursday last week and a few points lower than the highest level this month.

Dogecoin price bullish patterns

A look at the daily chart shows that Dogecoin, the biggest meme coin, formed several bullish patterns that are pointing to more gains to come in the coming months.

First, the chart shows that the coin formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other. A golden cross is one of the biggest bullish signs that we have in the market.

Second, DOGE also formed a hammer candlestick pattern. This pattern 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 important, Dogecoin 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 also moved to the strong pivot reverse pattern of the Murrey Math Lines. It also jumped above the Ichimoku cloud. As a result, these patterns are pointing to a potential DOGE price rally in the coming days. If this happens, we expect it to rally to the next point at $0.2290, the 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 today will be the 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 at 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 also pledged to be a more crypto-friendly president. Further, he has 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 follow will be able to push the Dogecoin price substantially higher than where it is today. However, there is still a risk that Trump will not win. If this happens, we will likely see a substantial sell-off in the coin.

The other risk is that traders who bought the coin because of the election hype will start to sell, in a process that is known as buy the rumour, sell the news.

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