NOIDA (CoinChapter.com) — Dogecoin price may soon rally because Dogefather Elon Musk is rallying again! Of course, optimistic technical patterns can also help. But first, some recent statements from Elon Musk on Dogecoin.
Musk has been an avid supporter of cryptocurrencies and is particularly fond of Dogecoin, the first memecoin. Many times, it was the Tesla CEO’s statement that triggered the DOGE price to strengthen.
Musk says Tesla may accept Dogecoin
During his visit to the Berlin Gigafactory, Elon Musk hinted that Tesla might accept Dogecoin payments in the future. The company is now accepting DOGE payments for Tesla products, which has led to a surge in DOGE prices in December 2021.
Musk was responding to a question from one of his employees who asked when they would be able to buy a Tesla using Dogecoins.
“Well, I think at some point we have to make it happen. You can purchase Tesla Merch with DOGE. It’s really good.,”
musk answered
Musk also stated that he started supporting Dogecoin after some of his factory employees asked him to support DOGE. The Tesla representative also said the memecoin’s catchphrase, “Send your Dogecoin to the moon.“
Musk’s statement comes as luxury car manufacturer Ferrari is introducing support for Dogecoin after declaring support for cryptocurrency payments in October 2023.
However, investors were wary of the statement, with several traders accusing Musk of shilling memecoins. Cryptocurrency influencer Joe Nakamoto made Musk having fun labeling Dogecoin “The People’s Cryptocurrency,” said only Bitcoin deserves the title.
DOGE price moving inside a bullish pattern
Meanwhile, DOGE price is ‘Rising triangle.‘
The horizontal trend line connecting the swing highs and the rising trend line connecting the swing lows form an ascending triangle pattern. Volume helps determine whether a breakout is strong. In ideal conditions, buyers will enter the market when the trend line closes the gap.
As a result, the price of the token rises above the horizontal resistance due to high volume trading.
According to the rules of technical analysis, the target price for a breakout is equal to the height of the triangle at its thickest point. If the triangle pattern develops, DOGE’s theoretical price target would be close to $0.25, a surge of over 34% from current levels.
DOGE price rose nearly 17% after Musk’s comments on Dogecoin were published, reaching a daily high of $0.193.
If Musk’s comments attract buyer attention, DOGE could break out of the pattern and challenge resistance near $0.2. A reversal of the immediate resistance could help Memcoin rally towards the 0.786 FIB resistance near $0.23.
On the other hand, if the market does not react to Elon Musk’s support for Dogecoin, the token price could fall to support near $0.157. Continued selling will likely push DOGE price towards support near $0.13 before recovering.
DOGE’s RSI remained at the overbought threshold at 70.55 on the daily chart.