Key Takeaways:
- Tesla accepted Dogecoin payments for its Tesla Store merchandise.
- DOGE jumped in responce and put on 14% on Friday.
YEREVAN (CoinChapter.com) – Dogecoin bulls’ dream came true. The meme coin’s biggest proponent Elon Musk, the chief executive of SpaceX and Tesla, announced on Jan 14 that DOGE coins could purchase their holders Tesla merchandise.
As of publication, the “merchandise” includes only the Tesla Store, which carries products like a Cyberwhistle for 300 DOGE or a kids’ Cyberquad for 12020 DOGE. In addition, the website displayed the price for selected items in Dogecoin, while others were priced in USD.
The question remains if Dogecoin holders SHOULD buy Tesla merchandise. However, the adoption prompted an outburst of emotion from the Doge-army in the comment section, intending to take “DOGE TO THE MOOOON.”
Dogecoin’s actual take-off to space that the billionaire-entrepreneur promised in 2021 might have to wait. However, the token packed over 15% in the Asian-Pacific session and could keep rising as the news spread.
Also read: Dogecoin (DOGE) rallies 15% as the crypto market recovers from slump.
Technical indicators support the outlook, hinting at a bullish continuation on the daily and the weekly charts.
Dogecoin (DOGE) technicals
The canine meme coin bulls gladly pushed DOGE up an additional 14%, while the uptrend began on Jan 11. Thus DOGE’s wiped out the previous bearish week and put on over 40% week-to-date.
Moreover, the digital asset traded in a Falling Wedge for over two months. Both trendlines in the formation have a negative slope and push the price down. The bullish reversal setup could result in a continuation rally in Q1 2022, as Dogecoin broke out of the Wedge on Jan 13.
Also read: Elon Musk reaffirms his support for Dogecoin, says its better than Bitcoin.
The weekly chart supported the meme coin’s bullish outlook and printed another Falling Wedge. The latter started in early April 2021 and followed DOGE’s start-of-the-year explosive 13,140% rally (Jan-Apr 2021).
Also read: Dogecoin Co-Creator revealed he holds less than $40K in DOGE.
Despite the unanimously bullish low and high time frame charts, DOGE still has key resistances to conquer. The support-turned-resistance bar at $0.21-0.23 could cap the token’s attempts, as it has done four times in the previous six weeks. However, if the token flips the resistance bar and retests it as support again, it could continue the rally.
