What is the cryptocurrency market doing: Musk's DOGE Role Boosts Dogecoin

The recent news in cryptocurrency market that billionaire Elon Musk will lead a newly formed government agency, the Department of Government Efficiency (DOGE), has triggered a notable spike in the price of Dogecoin (DOGE/USD).

Dogecoin Surges After Trump Announces DOGE Agency Led by Musk and Ramaswamy
Last week, President-elect Donald Trump announced that Elon Musk and entrepreneur Vivek Ramaswamy would head the newly created Department of Government Efficiency, with the goal of reducing government spending and regulations. In the wake of this news, Dogecoin's price surged to a yearly high of $0.39.

Coinbase CEO Brian Armstrong expressed his support for the DOGE agency on X (formerly Twitter) on Sunday, calling it a chance to strengthen economic freedom in the U.S. He also suggested constitutional amendments to limit government spending to 10% of GDP.

Armstrong further suggested the creation of a sovereign wealth fund, where every U.S. citizen would own a share, and budget surpluses would yield dividends to the shareholders.

Although the newly announced DOGE government department shares the same acronym as Dogecoin, it is not directly linked to the cryptocurrency. However, the announcement still led to a significant increase in Dogecoin's price.

Elon Musk, who has previously faced accusations of manipulating Dogecoin's price, successfully defended himself in a 2022 lawsuit concerning these claims.

Most Active Crypto Currencies for now

1. Bitcoin USD
Bitcoin USD represents the price of one Bitcoin in terms of U.S. dollars. This trading pair is one of the most widely followed in the cryptocurrency market and is used to track Bitcoin’s value and trade it on exchanges.

Bitcoin is currently trading about 5% higher on the day, having broken through the $90k barrier. With the lack of historical price action at these levels, performing technical analysis has become increasingly challenging. To the upside, I’ll be watching key round numbers like $95k, as a push past this could pave the way for the $100k milestone to become a real possibility.

On the downside, there are still some levels to keep an eye on. BTC/USD is currently in overbought territory, with the RSI hovering in the mid-80s. While an overbought RSI doesn’t automatically signal an impending selloff, it’s something worth monitoring.

Support may be found at $90k, with further levels at $88,884 and $86,334. If the price continues lower, the focus will shift to the $85k and $81,500 levels.

2. ETH-USD
ETH-USD refers to the trading pair of Ethereum (ETH) against the US Dollar (USD). It represents the price of one Ether (ETH) in terms of U.S. dollars. As one of the most popular cryptocurrencies, Ethereum is often traded against USD to track its value and facilitate buying and selling.

Ethereum's native token, Ether (ETH), hit a new monthly high of $3,450 on November 12, following a 6% rally. The cryptocurrency has gained approximately 30% this month, marking its second-best monthly performance since February 2024.

US spot Ether ETFs witnessed record inflows of nearly $295 million on Nov. 11, with Fidelity’s Ethereum fund leading with $115.5 million. BlackRock and Grayscale also experienced significant inflows.

3. XRP-USD
XRP-USD refers to the trading pair of XRP (the native cryptocurrency of the Ripple network) against the US Dollar (USD). It represents the price of one XRP in terms of U.S. dollars. XRP is primarily used for cross-border payments and has gained popularity due to its fast transaction speeds and low fees, making it a popular choice for financial institutions and payment services.

XRP surged past the $1 mark on November 16, reaching a three-year high of $1.26. The rally was driven by growing optimism surrounding a favorable regulatory environment for cryptocurrencies, as well as the potential resolution of Ripple's ongoing legal battle with the US Securities and Exchange Commission (SEC).

4. DOGE-USD
DOGE-USD refers to the trading pair of Dogecoin (DOGE) against the US Dollar (USD). It represents the price of one Dogecoin in terms of U.S. dollars. Initially created as a meme cryptocurrency, Dogecoin has gained significant popularity over the years, largely driven by its community, social media influence, and endorsements from high-profile figures like Elon Musk.

Dogecoin has solidified its position as a major player in the cryptocurrency market, currently ranking sixth with a market capitalization of $52.29 billion. The cryptocurrency's future growth prospects are bolstered by several key factors, including rising merchant adoption, technical advancements such as the implementation of DRC-20 tokens, and increasing institutional interest. Ongoing projects like GigaWallet and RadioDoge, along with improvements to the network's capabilities, indicate a promising expansion of Dogecoin's ecosystem.

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