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 start accepting it as payment for merchandise. 

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

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

DOGE/USD hourly worth chart. Supply: TradingView

Higher than Bitcoin

Tesla’s integration of a DOGE cost possibility on its on-line purchasing portal got here virtually a month after Musk shared his willingness to simply accept the cryptocurrency as cost on a check foundation.

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

“Basically, Bitcoin is just not an excellent substitute for transactional foreign money. Though it was created as a foolish joke, Dogecoin is healthier fitted to transactions.”

The billionaire entrepreneur additional burdened that Bitcoin’s cost per transaction is high whereas its transactional quantity is low in comparison with DOGE. Because of this, Bitcoin may very well be nicely off being a store-of-value asset. Then again, DOGE might carry on encouraging individuals to spend.

What’s subsequent for DOGE?

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

Intimately, DOGE worth rally was rammed right into a descending trendline resistance that had been capping its upside makes an attempt since Could 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 beneath.

DOGE/USD every day worth chart. Supply: TradingView

In the meantime, the Dogecoin’s 200-day exponential transferring common (200-day EMA; the orange wave) additionally performed a key position in limiting its good points on Jan. 14. Collectively, the resistance confluence hinted that DOGE worth could 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 likelihood to increase its correction in the direction of $0.1367 on account of its current historical past as assist.

DOGE/USD every day worth 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 mirror the views of Each funding and buying and selling transfer includes threat, it is best to conduct your personal analysis when making a call.