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 choice on its on-line buying portal got here virtually a month after Musk shared his willingness to simply accept the cryptocurrency as cost on a take a look at foundation.

On the heart stage of Musk’s love for DOGE was its “better-than-Bitcoin” features, primarily as a cost choice 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 suited 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. Consequently, Bitcoin may very well be nicely off being a store-of-value asset. Alternatively, 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 Might 2021. On Jan. 14, the trendline once more grew to become instrumental in sending DOGE from its intraday prime of $0.2150 to $0.1958, as proven within the chart beneath.

DOGE/USD day by 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 positive aspects on Jan. 14. Collectively, the resistance confluence hinted that DOGE worth 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 help, with the chance to increase its correction in direction of $0.1367 on account of its latest historical past as help.

DOGE/USD day by 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 here are solely these of the creator and don’t essentially mirror the views of Each funding and buying and selling transfer entails danger, you must conduct your individual analysis when making a call.