NOIDA (CoinChapter.com)— Dogecoin price might be looking at a rally soon because the Dogefather Elon Musk is at it again! And, of course, a bullish technical pattern might also help. But first, its Elon Musk’s latest statement on Dogecoin.
Musk has been a vocal supporter of cryptocurrencies and has taken a particular liking to Dogecoin, the first memecoin. Many times, it has been a statement from the Tesla CEO that has triggered DOGE prices to go into a bull run.
Musk Says Tesla Might Accept Dogecoin
During a visit to the Berlin gigafactory, Elon Musk hinted that Tesla might accept Dogecoin payments in the future. At the moment, the firm accepts DOGE payments for Tesla merchandise, a decision which sent DOGE prices rocketing in Dec. 2021.
Musk was answering a question from one of his employees, who asked when someone could buy a Tesla using Dogecoins.
“Well, you know, at some point, I think we should enable that. You can buy Tesla Merch with DOGE, which is cool,”
Musk answered
Moreover, Musk revealed that he started supporting Dogecoin after some of his factory employees asked him to support DOGE. The Tesla chief also took the opportunity to share the memecoin’s catchphrase, “Dogecoin to the moon.“
Musk’s statement comes as luxury car maker Ferrari introduces support for Dogecoin after declaring support for crypto payments in Oct. 2023.
However, investors remained wary of the statement, with several traders calling out Musk for shilling the memecoin. Crypto influencer Joe Nakamoto made fun of Musk’s labeling of Dogecoin as “the people’s crypto,” stating that only Bitcoin deserved the title.
DOGE Price Moving Inside Bullish Pattern
Meanwhile, DOGE price is moving inside a bullish technical pattern called the ‘Ascending Triangle.‘
A horizontal trendline that connects swing highs and an ascending trendline connecting swing lows form an ascending triangle pattern. Volume helps determine if a breakout is strong. Under ideal conditions, buyers would enter the market as the trendlines close the gap.
As a result, the toke’s price would push above the horizontal resistance with heavy volumes.
Per the rules of technical analysis, the price target for a breakout is equal to the height of the triangle at its thickest point. If the triangle pattern pans out, DOGE’s theoretical price target is near $0.25, a spike of over 34% from current levels.
DOGE price rallied nearly 17% to a daily high near $0.193 after Musk’s comment on Dogecoin hit the wires.
If Musk’s comments attract buyers, DOGE could break out of the pattern to challenge the resistance near $0.2. Flipping the immediate resistance could help the memecoin rally to the 0.786 FIB resistance near $0.23.
On the other hand, if the market does not respond to Elon Musk’s support of Dogecoin, the token’s price could drop to the support near $0.157. A continued sell-off would push the DOGE price to the support near $0.13 before it recovers.
The RSI for DOGE remained at the overbought threshold, with a score of 70.55 on the daily charts.
