Dogecoin (DOGE) rates climbed considerably on Jan. 14 as Elon Musk revealed that Tesla would certainly begin approving it as repayment for goods.
Tesla merch buyable with Dogecoin
— Elon Musk (@elonmusk) January 14, 2022
After the statement, DOGE rate leapt almost 13%, striking a 30-day high of $0.2150. Its upside relocate came as a component of a bigger intraday rally that currently was happening prior to Musk’s Dogecoin tweet went viral.
The DOGE rate rose by over 25% on Jan. 14 prior to dealing with reduced to $0.1986 on profit-taking.
Better than Bitcoin
Tesla’s assimilation of a DOGE repayment alternative on its on the internet purchasing website came nearly a month after Musk shared his desire to approve the cryptocurrency as repayment on an examination basis.
At the spotlight of Musk’s love for DOGE was its “better-than-Bitcoin” attributes, mainly as a settlement alternative because of its reduced electrical power usage. In passages from Musk’s declarations to Time Magazine, he described that:
“Fundamentally, Bitcoin is not a good substitute for transactional currency. Even though it was created as a silly joke, Dogecoin is better suited for transactions.”
The billionaire entrepreneur further stressed that Bitcoin’s cost per transaction is high while its transactional volume is low compared to DOGE. As a result, Bitcoin could be well off being a store-of-value asset. On the other hand, DOGE could keep on encouraging people to spend.
What’s next for DOGE?
The latest round of buying in the Dogecoin market somewhat subsided as DOGE tested a multi-month resistance trendline for a topside breakout.
In detail, DOGE price rally was rammed into a descending trendline resistance that had been capping its upside attempts since May 2021. On Jan. 14, the trendline again became instrumental in sending DOGE from its intraday top of $0.2150 to $0.1958, as shown in the chart below.
Meanwhile, the Dogecoin’s 200-day exponential moving average (200-day EMA; the orange wave) also played a key role in limiting its gains on Jan. 14. Together, the resistance confluence hinted that DOGE price may pull back from its ongoing uptrend in the coming sessions.
Related: Dogecoin creator slams Mozilla for pausing crypto donations
Should this happen, the token will look poised to test its 50-day EMA (the velvet wave) as support, with the possibility to extend its correction towards $0.1367 due to its recent history as support.
Conversely, a decisive breakout above the descending trendline resistance and the 200-day EMA could have traders eye $0.30 as their next upside target in the Dogecoin market. The area surrounding the $0.30-level had earlier served as resistance.
The sights as well as point of views revealed below are only those of the writer as well as do not always show the sights of Cointelegraph.com. Every financial investment as well as trading action includes threat, you need to perform your very own study when choosing.
