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 going down 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 possibility on its on-line purchasing portal got here nearly a month after Musk shared his willingness to simply accept the cryptocurrency as fee on a take a look at foundation.

On the heart stage of Musk’s love for DOGE was its “better-than-Bitcoin” features, 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:

“Essentially, Bitcoin shouldn’t be a great substitute for transactional forex. Although it was created as a foolish joke, Dogecoin is healthier fitted 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 may very well be nicely off being a store-of-value asset. Alternatively, DOGE may carry on encouraging individuals 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 value 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 turned 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 transferring common (200-day EMA; the orange wave) additionally performed a key position in limiting its good points 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 likelihood to increase its correction in direction of $0.1367 as a consequence 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 may 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 creator and don’t essentially replicate the views of Each funding and buying and selling transfer entails danger, you must conduct your individual analysis when making a choice.