Signs Of A Major Breakout Emerge

Dogecoin has emerged as a focal point of conversation, even amid a sudden wave of meme coins linked to Donald Trump’s return to the spotlight. On-chain analysis firm Santiment, which recently shared a sentiment dashboard on X, notes that “the top trending tokens” are all about meme coins following the “historic US inauguration of Donald Trump.”

In their latest post, Santiment emphasizes that “TRUMP is being discussed following its controversial listing on Coinbase, and the risks involved in investing during a volatile market,” while there is also “significant interest in airdrops of ‘TRUMP’ tokens, with a notable event securing $1M worth of tokens.”

MELANIA, another meme coin tied to the Trump brand, has caused a stir by briefly surpassing a $9 billion valuation, although it has endured “substantial fluctuations amid broader market uncertainty.”

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Meanwhile, Dogecoin’s surge in social media mentions is attributed by Santiment to the newly established US Department of Government Efficiency (DOGE) led by Elon Musk, as the project uses Dogecoin as its avatar. On January 21, the US Government officially launched the Department of Government efficiency (DOGE) website which has the official Dogecoin logo on it.

“This initiative has sparked discussion as it intertwines cryptocurrency with government operations, generating buzz on social media. Additionally, discussions around the potential for new meme coins linked to public figures like Trump and Musk contribute to the speculation about Dogecoin’s future performance and relevance in the crypto space,” Santiment writes.

Despite the sudden attention on TRUMP and MELANIA, Santiment’s sentiment breakdown underscores mixed feelings for both tokens. Regarding TRUMP, the post states: “The word ‘trump’ is trending due to discussions about the Trump Coin. Its price fluctuations, and the speculative nature of meme coins, users are debating the risks of investing in Trump Coin.”

Santiment’s “positive” analysis points to “political influence and executive actions” as reasons for optimism, highlighting that “the anticipation of a crypto executive order from Trump has generated excitement among investors.”

Related Reading: Will Dogecoin Skyrocket Soon? Chart Pattern Suggests Yes

MELANIA’s sentiment likewise splits along bullish and bearish lines, with the negative view referencing a more than 70% drop from its initial peak price, and the bullish narrative noting “celebrity endorsement” from Donald and Melania Trump as a potential driver of renewed interest.

Technical Analysis: DOGE Confirms Breakout

At press time, Dogecoin (DOGE) was trading at around $0.367 after rebounding from a descending trendline dating back to early December. The breakout above the diagonal resistance occurred earlier this week, followed by a successful retest of the trendline yesterday, confirming it as new support.

Following the retest, DOGE is now contending with the 0.5 Fibonacci retracement level at $0.3943, which marks the next major overhead barrier. A clear break of this resistance could open the door to the higher 0.618 Fib level at $0.4759 and the 0.786 Fib at $0.5920.

On the downside, if DOGE fails to break the 0.5 Fib, the 0.382 Fib at $0.3129 may act as the most reliable support. Meanwhile, the Relative Strength Index (RSI) at around 51 remains neutral, reflecting balanced momentum and leaving room for a potential continuation to either side.

Featured image created with DALL.E, chart from TradingView.com