With Dogecoin prices surging since Donald Trump’s election, investors are likely wondering how high Elon Musk can take the meme coin. The Tesla (TSLA) CEO has been tapped to lead a new government division called the Department of Government Efficiency (DOGE) alongside former GOP presidential candidate Vivek Ramaswamy.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
This department will primarily focus on reducing costs for the federal government and doesn’t directly have anything to do with crypto. But its name has helped boost Dogecoin prices as the term DOGE continues to trend and this trend seems likely to continue as Trump takes office.
What’s Happening with Dogecoin?
Dogecoin is rising steadily today after a fairly volatile week. As of this writing, it is up 6.5% for the day and looks primed to continue rising. However, this meme coin, often written off as a joke by serious investors, has enjoyed tremendous growth over the past three months, rising more than 260%. Most of this growth has happened in the weeks since the U.S. presidential election.
Musk has long been a supporter of Dogecoin. He has described it as “the people’s crypto” and tried to incentivize companies such as McDonald’s (MCD) to accept it. He recently stated in an X space that he still owns “a bunch of Dogecoin.” Now the fact that he will be running a government office referred to as DOGE suggests that the crypto will remain in full focus, likely to boost prices.
So far, the DOGE concept is garnering support from the crypto community. Coinbase Global (COIN) CEO Brian Armstrong has described it as “the key to U.S. economic freedom.” Now Armstrong himself may be on the way to receiving a White House position, as he is expected to meet with Trump soon.
Where Will Dogecoin Prices Go from Here?
It’s hard to speculate as to how much Dogecoin prices can rise under Musk. As of this writing, DOGE currently trades at $0.39 per coin. This low price could entice speculative traders to increase their bets on Dogecoin, as the margin for profit is still high while the risk is fairly minimal. Given the volatile nature of meme coins, it is hard to predict exactly how high prices will rise. In the short term, however, Dogecoin is likely to keep trending upward.
