The recent surge in Dogecoin (DOGE) prices has been largely driven by positive sentiment surrounding the token’s endorsement by tech entrepreneur Elon Musk, dating back to his involvement in the Trump administration.
Dogecoin extended its impressive rally for the fourth consecutive day, jumping 48% in the past 24 hours and reviving discussions of a potential $1 price target.
Early Tuesday, DOGE broke past 41 cents for the first time since May 2021, when it set an all-time high of just over 70 cents. Data shows that DOGE has delivered over 150% returns to investors in the past week and has nearly tripled in value over the past month.
DOGE-linked futures saw cumulative losses exceeding $68 million, marking the largest liquidations for the token this year, as open interest approaches a record high set in April.
Much of the rally has been fueled by bullish sentiment around Musk’s endorsement of the meme token. Recently, Musk has floated the idea of establishing a “Department of Government Efficiency,” abbreviated as D.O.G.E, aimed at optimizing government spending. This has sparked excitement among traders, who anticipate further references to “DOGE” in mainstream media and among retail investors, as first noted in a CoinDesk analysis from mid-October.
This recent price momentum has encouraged some crypto traders to set $1 as a significant price goal for DOGE — a target that has been highly anticipated since the token’s peak above 70 cents in 2021.
The appeal of reaching $1 has strong psychological significance, sparking the “doge to $1” meme in recent years.
