Meme crypto Dogecoin (CRYPTO: DOGE) is clearly one of the biggest winners of this year’s incredible rally. At the time I started writing this piece, Dogecoin was up 20% in the past day. However, as of 1:45 PM ET, Dogecoin is up 23.6% over the past 24 hours, bringing this token’s one-week gain to over 120%.

That’s definitely something to be aware of, whether you’re a crypto enthusiast or not.

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The question then naturally becomes whether this rally makes sense at all, or whether there is little to say about today’s move in this dog-inspired cryptocurrency. Let’s take a look at the key drivers behind today’s price action, and where Dogecoin could go from here.

The narrative surrounding many asset classes has certainly been boosted by the recent Republican political victory that captured the White House and the Senate, and also appears likely to lead to control of the House of Representatives. However, some assets linked to newly elected President Donald Trump (and Elon Musk, who appeared at a number of rallies in support of the former president’s re-election bid) have performed better than others.

Dogecoin got its latest boost this year with comments courtesy of Elon Musk that he will try to set up the Department of Government Efficiency (DOGE) in some role within the new administration to help Trump reduce costs. This nod to Dogecoin, one of many from the Tesla CEO, led to an initial spike earlier this year, boosting the meme token among fans who expected to hear more from Elon about this token if Donald Trump won the election.

Investors can certainly trust Musk to speak his mind. His support for Dogecoin appears to remain strong, although any sort of accurate indication of how many tokens he may own remains unknown. But like many other assets that are simply rising in value due to the changes in governance in the US, Dogecoin is clearly riding high on this win, with its value more than doubling since the election.

This lightning-quick rally was certainly something to watch, and it’s even more incredible considering there has been little profit-taking since the election. Shares of Tesla fell about 6% in intraday trading today as investors appeared to be looking for some gains ahead of what could be a consolidation phase. But if there’s one thing that’s well documented about crypto investors (and speculators), it’s that momentum can create meaningful tailwinds that can last for a while. Therefore, many investors may feel that it is now too early to place bullish bets on the best meme token.

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