Dogecoin Breaks Bearish Curse Following Elon Musk’s DOGE Acceptance Tweet
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Dogecoin (DOGE) recorded a massive spike yesterday, following supporting comments from Tesla and SpaceX CEO Elon Musk. The billionaire CEO announced via Twitter that his electric vehicle manufacturing company would begin accepting (DOGE) as payment for some products. Musk tweeted that:
“Tesla will make some merch buyable with doge & see how it goes.”
The announcement comes a day after the billionaire was named Time Magazine’s Person of the Year. The Tesla boss asserted that Dogecoin performs better for transactions than Bitcoin, adding that BTC is more suited as a store of value.
DOGE recorded a 29.5% spike on the news, jumping from $0.1699 at the time of Musk’s announcement to $0.2200 on Bittrex within an hour.
Meanwhile, Tesla has yet to resume accepting BTC as payments for vehicles after ceasing to do so in May, following environmental concerns. Musk asserted that Tesla would begin collecting Bitcoin again “when there’s confirmation of reasonable (~50%) clean energy usage by miners with [a] positive future trend, Tesla will resume allowing Bitcoin transactions.”
Nonetheless, the electric vehicle manufacturer still holds BTC on its balance sheet. According to its Q3 earnings report, its BTC holding is worth $1.26 billion. However, the company does not have DOGE or any other digital asset on its balance sheet.
Key Dogecoin Levels to Watch — December 15
Before yesterday, DOGE maintained a bearish pattern as it traded along my bearish tripwire since its $0.3400 peak in late October. Yesterday’s Musk-induced volatility helped the meme coin break away from the bearish pattern and hit the 0.2200 top.
However, DOGE could not maintain this rally considering the FUD presence in the market and dropped to the $0.1800 support, where it currently trades. Barring the intense uncertainty in the market, we could see a bullish pullback towards the $0.2000 mark in the near term.
Meanwhile, my resistance levels are $0.1900, $0.2000, and $0.2100, and my support levels are $0.1720, $0.1650, and $0.1600.
Total Market Capitalization: $2.21 trillion
Dogecoin Market Capitalization: $24 billion
Dogecoin Dominance: 1.08%
Market Rank: #10
