The dogecoin returns to the forefront thanks to Elon Musk.
The CEO of Tesla and SpaceX tweeted Friday confirming that his company, Tesla, has started accepting Dogecoins for merchandise payments. The announcement appears to have helped DOGE recover, adding to the gain streak seen in the meme base over the week. The asset has grown within minutes of Musk’s announcement and is currently trading at $ 0.19, up 35.7% over the past three days.
Despite the significant gains posted by Dogecoin over the past few days, the asset faces a number of obstacles to maintain its bullish momentum.
It has reached a critical zone of resistance represented by the hypotenuse of a descending triangle. The price action has been contained within the descending triangle since April 2021. While the recent promotion indicates that DOGE has gained ground, it remains to be definitively closed above $ 0.20. In addition, it needs to cross the 50-day moving average at $ 0.23 to confirm a departure from the consolidation pattern.
If Dogecoin breaks above the 50-day moving average, investors on the other hand may be encouraged to re-enter the market. This could help Dogecoin rise towards $ 0.35. However, it remains to be seen whether the buzz surrounding Tesla’s announcement will last.
It should be noted that a refusal to push Dogecoin back to $ 0.15 could result in any signs of weakness below current price levels. Breaking the critical demand zone could result in a break of the 200 to three day moving average, which could lead to further losses. He might then try to find support around $ 0.08 or even $ 0.05.