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 worth jumped almost 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 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 fee possibility on its on-line procuring portal got here nearly a month after Musk shared his willingness to simply 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 as a consequence of its decrease electrical energy consumption. In excerpts from Musk’s statements to Time Journal, he defined that:

“Basically, Bitcoin is just not 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 confused that Bitcoin’s value per transaction is excessive whereas its transactional quantity is low in comparison with DOGE. Because of this, Bitcoin may very well be effectively off being a store-of-value asset. Then again, DOGE may carry on encouraging folks 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 high of $0.2150 to $0.1958, as proven within the chart under.

DOGE/USD each day worth 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 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 help, with the likelihood to increase its correction in the direction of $0.1367 as a consequence of its current historical past as help.

DOGE/USD each day worth chart. Supply: TradingView

Conversely, a decisive breakout above the descending trendline resistance and the 200-day EMA may 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.

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