DOGE Surges 7% After Elon Musk Hints at Tesla Purchases with Dogecoin

In the past 24 hours, the price of Dogecoin surged by 7%, reaching $2.880, with trading volume increasing by 58% to $3.9 billion.

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This rise followed Elon Musk’s suggestion that Tesla could potentially start accepting Dogecoin as payment for its electric cars.

Dogecoin’s Potential for Tesla Purchases Spurs Price Surge

Elon Musk’s recent remarks from the Giga Berlin manufacturing plant hint at the possibility of Tesla cars being purchasable with Dogecoin in the future. Although Dogecoin is already accepted for some Tesla merchandise, there’s no official confirmation yet on when or if it will extend to car purchases.

DOGEUSD Chart Analysis Source: Tradingview.com

Dogecoin’s price has been steadily climbing since mid-February, experiencing a 125% surge during this period. Bulls aim to continue this momentum, with DOGE already breaking through the upper boundary of the symmetrical triangle pattern.

Currently, DOGE is trading above both the 50-day and 200-day Simple Moving Averages (SMA), confirming the bullish trend. The recent golden cross formation, where the 50-day SMA crosses above the 200-day SMA at $0.08, further strengthens the bullish sentiment.

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The Relative Strength Index (RSI) is trending upwards towards the overbought region, currently at 64. If the current upward trajectory continues, the RSI could surpass 70, indicating significant buying pressure.

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Furthermore, the Moving Average Convergence Divergence (MACD) confirms bullish sentiments with a bullish crossover, where the blue moving average line crosses above the orange signal line. This suggests potential for further price increases as bulls are encouraged to increase their positions.

Positive momentum is also evident in the histogram, with green bars rising above the neutral line. The Average Directional Index (ADX) sits at 15, indicating a price moving towards equilibrium as it attempts to break into a strong trend.

Dogecoin Price Analysis: Bulls Target $0.24

In the short term, Dogecoin’s price analysis suggests a bullish bias, with bulls aiming to leverage the symmetrical triangle pattern to propel the price towards $0.24, targeting its all-time high (ATH) at $0.7316.

However, the Average Directional Index (ADX) indicates a trend in equilibrium, potentially allowing bears to seize control of the price. In such a scenario, a retracement to the major support zone at $0.14 may act as a buffer against downward pressure.

While Dogecoin bulls seek to bolster their positions, other investors are turning their attention to Green Bitcoin, a Bitcoin derivative poised to surge ahead of the incoming Bitcoin halving in April.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.