Dogecoin Price Spikes 14% as Elon Musk Hints Tesla May Accept DOGE
DOGE price spikes today on Elon Musk mention, but is it enough to spark a major rally?
Key Takeaways
- Musk hints Tesla may accept DOGE, boosting interest.
- DOGE’s rally signals potential for both gain and correction.
- DOGE targets $0.13 before aiming above $0.35 after correction.
Elon Musk, CEO of Tesla and SpaceX, has further spurred interest in Dogecoin. During a visit to Tesla’s Berlin factory, he hinted at the possibility of Tesla accepting Dogecoin for car purchases in the future. He also reminded people they can already buy Tesla merchandise with DOGE.
Dogecoin (DOGE) is experiencing a rally, with some technical indicators suggesting a ‘Buy’ signal while others suggest a pullback is on the way. This rally follows Dogecoin’s overcoming certain resistance levels, with the analyst predicting an impending major resistance breakout.
Dogecoin (DOGE) Price Analysis
DOGE’s price trajectory began its upward movement in mid-October of last year. After solidifying its position above a $0.06 support level, it soared 82% to encounter resistance at $0.10 before experiencing a decline in December.
A modest rise from its January low hinted at the onset of an uptrend. This was solidified by a breakthrough above $0.10, indicating a bullish phase.
DOGE has achieved its highest price point since April 2022, making an increase of more than 150% its January low. It has also climbed about 260% from its earlier support level, reaching $0.20 at its peak on March 4.
The daily chart indicates resistance at the current price, with the latest peak showing signs of a potential pullback, signaled by a red candle. The daily Relative Strength Index nearing an overbought threshold at 95% gave further credence to a bearish short-term forecast.
The likelihood of a price correction is supported by the possibility of witnessing the third wave in a broader five-wave pattern. The anticipated fourth wave could see DOGE’s price revisiting former resistance levels as it seeks new support, setting the stage for another upward movement.
The immediate target is $0.13, though a retracement might occur sooner. DOGE is poised for another surge following this correction, potentially surpassing $0.35.
Zooming into the hourly chart, we can see that a subsequent downturn to the ascending support followed March 14’s 14% spike. Should it break this level, it could signal the start of the expected downturn.
However, if DOGE finds support here and goes above its March 4 high, we could see further uptrend continuation.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
