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 value 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 value went up by over 25% on Jan. 14 earlier than correcting decrease to $0.1986 on profit-taking.
DOGE/USD hourly value chart. Source: TradingView
Better than Bitcoin
Tesla’s integration of a DOGE cost choice on its on-line procuring portal got here virtually a month after Musk shared his willingness to just accept the cryptocurrency as cost on a check foundation.
At the middle stage of Musk’s love for DOGE was its “better-than-Bitcoin” options, primarily as a cost choice because of its decrease electrical energy consumption. In excerpts from Musk’s statements to Time Magazine, he defined 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.
DOGE/USD daily price chart. Source: TradingView
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.
DOGE/USD daily price chart. Source: TradingView
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.
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