- Electric car behemoth Tesla adds a Dogecoin note to their Checkout page.
- Bitcoin’s quick recovery to $65K boosts Dogecoin with high price correlation.
- Overbought position imposes a challenge on Dogecoin’s ride above $0.17.
Tesla Motors has recently updated its Frequently Asked Questions section on its homepage, elaborating on Dogecoin’s (DOGE) support as a means of payment. This has sparked a bullish wave for DOGE, leading to a surge to new weekly heights of $0.168.
With a 30% upswing in price since last Thursday, Dogecoin’s acceptance rate also got a significant boost when Tesla’s official electronic shop’s checkout page was updated with the note: “Dogecoin may also be accepted on select products.” While the e-car giant has already started accepting DOGE for merchandise, CEO Elon Musk affirmed that payment in DOGE for Tesla’s electric cars will be available in the future.
A Favorable Setup for DOGE’s Takeoff?
The top dog coin reached a similar level on May 4, 2024, at $0.1668 but failed to jump above the key resistance of $0.17 twice since last weekend. Sporting a very high 0.97 price correlation with Bitcoin (BTC), DOGE faces a small resistance barrier from $0.167 to $0.183, where 99.2K crypto addresses hold 3.08 billion Dogecoins.
However, Dogecoin’s double rejection at the $0.17 price range suggests that a market correction is impending, as DOGE showcased an overbought position in its Relative Strength Index (RSI), pointing to above 70 on the daily charts.
DOGE has a foundation of 82% Dogecoin custodians currently making a profit at this price range. Exhibiting stronger market liquidity than competing peers Cardano (ADA) and Shiba Inu (SHIB), DOGE’s combined order book favors the bulls by $7 million, with $89M bids and $82M sales over the past 24 hours.
On the Flipside
- In crypto derivatives markets, Dogecoin’s trading volume plunged 44% in a day, now totaling $3.12 billion.
- Despite the substantial DOGE price surge, liquidated long positions outscored shorts by $2.48 million to $2.34 million.
Why This Matters
Dogecoin has been among the most widely accepted cryptocurrencies since 2021, when the token became popular across social media platforms.
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