Why is Dogecoin (DOGE) Rallying Today?
Dogecoin (DOGE) is a on a rally on Tuesday, registering double-digit gains over the past 24 hours as investors cheer the uptick in Bitcoin prices during the previous session. At the time of writing, DOGE/USD is trading at around $0.237.
The mood in the crypto market received quite the boost on Monday after Bitcoin prices surged past $49,000 and now traders are waiting to see if they can test and break past the $50,000 mark as well. As the leading cryptocurrency by market cap, moves in Bitcoin play a key role in driving the market sentiment, causing other digital assets to move in a similar manner. The memecoin DOGE share a close correlation with BTC, rising when it goes up and down when it trades bearish.
The Elon Musk Effect on Dogecoin
However, the sentiment is not the key factor driving the current rally underway in Dogecoin. The joke cryto’s community has been cheering Elon Musk’s latest tweet of his pet dog Floki adopt a Tesla car. The reason for the cheer is that the Doge Army is taking this as a positive sign that Musk’s company Tesla could be gearing up to start accepting payments in DOGE. As a major fan of the memecoin, Elon Musk has often referred to himself as the Dogefather, driving significant volatility in its price whenever he shares any updates related to the crypto on social media.
DOGE’s price received another boost after billionaire and another leading promoter, Mark Cuban, praised the cryptocurrency during a recent interview. When speaking with Fox Business on Monday, Cuban remarked, “There’s a lot of people paying [with] Dogecoin. We sell thousands and thousands of dollars per month during the off-season, and once the season starts I expect that to happen per week in Dogecoin – and that’s really because it’s easy to spend, it doesn’t appreciate so much that people want to hold it forever.”
Meanwhile, on the fundamentals front, an interesting NFT related development could drive up the use of DOGE in the near future. ElonVerse – a meme-based NFT project featuring over 10,000 unique funny Elons, is ready to launch on the Binance Smart Chain. Investors in ElonVerse’s NFTs can also generate passive income in Dogecoin, getting 5% of the token value they hold in DOGE.
Key Levels to Watch
On the 4-hour price chart of DOGE/USD, moving averages and MACD are suggesting a bullish bias. Although, other leading technical indicators momentum and Stochastic RSI Fast point to some selling interest as well.
Dogecoin’s price is holding above the pivot point at $0.214 as well as the first resistance at $0.233. Increased buying pressure can see a test of the second resistance at $0.246 soon, a break above which can take DOGE past the key $0.25 mark until resistance at $0.278.
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