Dogecoin, the original memecoin, is currently showing solid performance, retesting the current resistance at $0.09370. according to Coinhecko, the token is still up in all time frames with the biggest gains made in the monthly time frame at 27%. This bullish continuation is the result of Elon Musk mentioning the coin.
Musk tweeted back on January 25th last about how to enjoy a McDonald’s meal if the fastfood company accepts Dogecoin as a payment method. Since then, the DOGE community has create pressure in the company they are showing support for Elon’s proposal.
If McDonald’s ever implements DOGE as a payment method, the coin will have access to it 40,031 restaurants while simultaneously adding big names in the number have many traders who accept coins as a method of payment.
Is this offer still open? pic.twitter.com/lTE4wdl0jf
– DogeDesigner (@cb_doge) January 27, 2023
Elon’s influence on Dogecoin remains
Elon Musk’s effect on price action is certainly evident in these coins. Following the tweet, DOGE started a rally after falling 34% in a week. Now Musk make new offer to McDonald’s, it remains to be seen if the company even accepts the offer.
Obviously, the DOGE community has been very optimistic about accepting the coin as a payment method. Matt WallaceA huge crypto influencer, answered Musk showing his support for McDonald’s acceptance of DOGE as a payment method:
McDonald’s #Dogecoin Welcome Reception!
– Matt Wallace (@MattWallace888) January 27, 2023
However, this bullishness does not consider McDonald’s side whether to accept Dogecoin, or crypto for that matter, as a mode of payment.
DOGE total market cap at $11 billion on the daily chart | Chart: TradingView.com
Optimistic Investors Should Be Cautious
Optimism is good for the market because it means investor confidence in the asset is high. However, DOGE’s current market movement may be similar to last year’s price spike when the billionaire tweeted about the meme coin.
But it’s not surprising that the industry is so bullish because Tesla, the electric vehicle company owned by Elon Musk, has been accept DOGE is a form of payment for Tesla merchandise.
Meanwhile, Dogecoin is trading at $0.0892 with more than enough legroom for a sustained upward price move. Investors and traders can also enjoy the coin’s high correlation with major cryptos like Bitcoin and Ethereum as these coins are bullish with BTC near $24,000 and Ethereum (ETH) breaking $1.6k.
Featured image by Magazine Inc