Dogecoin leaps 25% after Musk announces DOGE payments for Tesla merch

Dogecoin (DOGE) costs rose considerably on Jan. 14 as Elon Musk introduced that Tesla would begin accepting it as fee for merchandise. 

After the announcement, DOGE value jumped practically 13%, hitting a 30-day excessive of $0.2150. Its upside transfer got here as part of a bigger intraday rally that already was happening earlier than Musk’s Dogecoin tweet went viral.

The DOGE value went up by over 25% on Jan. 14 earlier than correcting decrease to $0.1986 on profit-taking.

DOGE/USD hourly value chart. Supply: TradingView

Higher than Bitcoin

Tesla’s integration of a DOGE fee possibility on its on-line buying portal got here nearly a month after Musk shared his willingness to just accept the cryptocurrency as fee on a check foundation.

On the heart stage of Musk’s love for DOGE was its “better-than-Bitcoin” options, primarily as a fee possibility on account of its decrease electrical energy consumption. In excerpts from Musk’s statements to Time Journal, he defined that:

“Essentially, Bitcoin shouldn’t be a superb substitute for transactional foreign money. Though it was created as a foolish joke, Dogecoin is best suited to transactions.”

The billionaire entrepreneur additional harassed that Bitcoin’s price per transaction is excessive whereas its transactional quantity is low in comparison with DOGE. In consequence, Bitcoin may very well be properly off being a store-of-value asset. Alternatively, DOGE might carry on encouraging individuals to spend.

What’s subsequent for DOGE?

The newest spherical of shopping for within the Dogecoin market considerably subsided as DOGE examined a multi-month resistance trendline for a topside breakout.

Intimately, DOGE value rally was rammed right into a descending trendline resistance that had been capping its upside makes an attempt since Might 2021. On Jan. 14, the trendline once more turned instrumental in sending DOGE from its intraday high of $0.2150 to $0.1958, as proven within the chart under.

DOGE/USD each day value chart. Supply: TradingView

In the meantime, the Dogecoin’s 200-day exponential transferring common (200-day EMA; the orange wave) additionally performed a key function in limiting its positive aspects on Jan. 14. Collectively, the resistance confluence hinted that DOGE value might pull again from its ongoing uptrend within the coming classes. 

Associated: Dogecoin creator slams Mozilla for pausing crypto donations

Ought to this occur, the token will look poised to check its 50-day EMA (the velvet wave) as assist, with the chance to increase its correction in direction of $0.1367 on account of its current historical past as assist.

DOGE/USD each day value chart. Supply: TradingView

Conversely, a decisive breakout above the descending trendline resistance and the 200-day EMA might have merchants eye $0.30 as their subsequent upside goal within the Dogecoin market. The world surrounding the $0.30-level had earlier served as resistance.

The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Each funding and buying and selling transfer includes threat, you need to conduct your personal analysis when making a call.