Dogecoin (DOGE-USD) has taken significant strides toward mainstream acceptance, particularly with Elon Musk, the CEO of Tesla (NASDAQ:TSLA), hinting at adopting it as a payment method for Tesla vehicles.
During a recent visit to the Tesla Berlin Gigafactory, Elon Musk was asked about the possibility of purchasing Tesla vehicles with Dogecoin. Musk’s response? “At some point I think we should enable that.” This statement shouldn’t be a surprise as it aligns with Tesla’s innovative approach, having previously flirted with cryptocurrency payments. In 2021, Tesla briefly accepted Bitcoin (BTC-USD) before halting due to environmental concerns related to Bitcoin mining.
Dogecoin’s Recent Price Performance
Beyond Tesla’s potential adoption, Dogecoin’s market performance has been strengthening. The meme coin’s market cap has surged to nearly $28 billion, approaching the market cap of Ripple’s XRP (XRP-USD), which currently stands at $33 billion. Dogecoin’s adherents and fans have increasingly called for DOGE to ‘flip’ XRP by surpassing XRP in market capitalization.
From a technical analysis perspective, DOGE is preparing to break out. After hitting the $0.20 value area on March 28, it has since consolidated just below $0.20 between the $0.1895 and $0.1998 levels. There is a resistance cluster between the 50% Fibonacci retracement at $0.205 and the 161.8% Fibonacci extension at $0.207.
During this week’s trading, a symmetrical triangle pattern has developed, which has frustrated bulls and bears alike. Unfortunately, for both bulls and bears, a breakout in either direction may not turn into a fakeout. The Composite Index and Detrended Price Oscillators sit in neutral conditions, and because of that neutral stance, any breakout could have a significant drive behind it and result in Dogecoin’s performance leading the memecoin market in either direction.
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