Dogecoin (DOGE) costs rose considerably on Jan. 14 as Elon Musk introduced that Tesla would begin accepting it as cost for merchandise.
Tesla merch buyable with Dogecoin
— Elon Musk (@elonmusk) January 14, 2022
After the announcement, DOGE worth 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 worth went up by over 25% on Jan. 14 earlier than correcting decrease to $0.1986 on profit-taking.
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” options, primarily as a cost choice attributable to its decrease electrical energy consumption. In excerpts from Musk’s statements to Time Journal, he defined that:
“Basically, Bitcoin isn’t substitute for transactional forex. Regardless that it was created as a foolish joke, Dogecoin is healthier fitted to transactions.”
The billionaire entrepreneur additional harassed that Bitcoin’s value per transaction is excessive whereas its transactional quantity is low in comparison with DOGE. In consequence, Bitcoin may very well be nicely off being a store-of-value asset. Alternatively, DOGE may carry on encouraging folks 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 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 grew to become instrumental in sending DOGE from its intraday high of $0.2150 to $0.1958, as proven within the chart beneath.
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 beneficial properties on Jan. 14. Collectively, the resistance confluence hinted that DOGE worth might pull again from its ongoing uptrend within the coming classes.
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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 attributable to its current historical past as help.
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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