What’s next for DOGE after being ‘refueled’ by Tesla?

Dogecoin (DOGE) price rose sharply on Jan. 14 after Elon Musk announced that Tesla will start accepting payments such as credit cards Bitcoin Magazine reported.

Following the announcement, DOGE price surged almost 13% to hit a 30-day high of $0.215. Its bullish move was part of a larger intraday rally that preceded Musk’s viral Dogecoin tweet.

DOGE surged more than 30% on Jan. 14 before correcting to $0.185 for now as some investors took profits.

Hourly frame DOGE/USD price chart | Source: TradingView

Dogecoin is better than Bitcoin?

Tesla’s integration of the option to pay for goods with DOGE into its online shopping portal comes almost a month after Musk said it was ready to accept it on a trial basis.

According to Tesla’s website, products such as the “Cyberwhistle” horn and the “Cyberquad for Kids” electric scooter can be purchased from DOGE.

One of the reasons Musk loves DOGE is its “better than Bitcoin” features, especially as a payment option due to its lower power consumption. In excerpts from Musk’s testimony to Time Magazine, he states the following:

“Basically, Bitcoin is not a good substitute for transaction currency. Although created as a silly joke, Dogecoin is still better suited for transactions.”

Musk further emphasized that Bitcoin’s cost per transaction is high, while transaction volume is lower than DOGE’s. Thus, Bitcoin could become a store of value while DOGE could continue to incentivize spending.

What’s next for DOGE?

DOGE price faltered when it touched the resistance of the descending trend line, which limits its upside attempt since May 2021. On Jan. 14, this resistance again became the instrument that pushed DOGE down from the intraday high of $0.215 to $0.195 as shown in the chart below.

DOGE/USD daily frame price chart | Source: TradingView

Meanwhile, the 200-day exponential moving average (200-day EMA; orange wave) also played a major role in capping DOGE’s gain on Jan. 14. At the same time, the region’s confluence resistance is showing that DOGE price might decline in the upcoming sessions.

In that case, DOGE will be poised to test the 50-day EMA (velvet wave) as support and potentially extend the correction towards $0.1367, the recent support.

DOGE/USD daily frame price chart | Source: TradingView

Conversely, a decisive break above the descending trendline resistance and the 200-day EMA could prompt traders to set bullish targets for DOGE at the $0.3 level, where it previously traded as a bullish target.

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