Wednesday, May 18, 2022

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

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

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

“Basically, Bitcoin isn’t a very good substitute for transactional foreign money. Although it was created as a foolish joke, Dogecoin is best suited to transactions.”

The billionaire entrepreneur additional pressured that Bitcoin’s cost per transaction is high whereas its transactional quantity is low in comparison with DOGE. Consequently, Bitcoin might be nicely off being a store-of-value asset. However, 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 Could 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 under.

DOGE/USD day by day value chart. Supply: TradingView

In the meantime, the Dogecoin’s 200-day exponential shifting 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 the direction of $0.1367 because of its latest historical past as assist.

DOGE/USD day by 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 realm 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 Cointelegraph.com. Each funding and buying and selling transfer entails danger, it is best to conduct your individual analysis when making a choice.