Meme crypto Dogecoin (CRYPTO: DOGE) has clearly been one of the biggest winners in this year's incredible rally. At the time I started writing this piece, Dogecoin was up 20% over the past day. However, as of 1:45 p.m. ET, Dogecoin has now surged 23.6% over the past 24 hours, bringing this token's one-week gains to more than 120%.

That's certainly something to pay attention to, whether you're a crypto enthusiast or not.

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Of course, the question then becomes whether this rally makes sense at all, or if there's little to make of today's move in this dog-inspired cryptocurrency. Let's dive into the key drivers behind today's price action, and where Dogecoin could be headed from here.

The narrative around many asset classes has certainly gotten a boost from the recent Republican political victory that's swept the White House and Senate, and looks poised to result in control of the House as well. However, some assets tied to President-elect Donald Trump (and Elon Musk, who appeared at a number of rallies supporting the former president in his reelection bid) have outperformed others.

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

Investors can certainly rely on Musk speaking his mind. His support for Dogecoin appears to remain strong, though any sort of accurate indication of how many tokens he may own remains unknown. But like many assets that are appreciating simply because of the governance changes in the U.S., Dogecoin is clearly riding high on this win, with its token more than doubling since the election.

This supercharged rally has certainly been something to watch, and it's even more incredible considering little profit-taking activity has happened since the election. Shares of Tesla stock sank around 6% today in intraday trading, as investors appeared to look to take some profits 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 provide meaningful tailwinds that can last a while. Thus, many investors may feel now is too early to take any bullish bets on the top meme token quite yet.