Dogecoin, the original memecoin, is currently showing a solid performance, retesting its current resistance which is at $0.09370. According to Coinhecko, the token is still up in all time frames with the biggest gains being made in the monthly time frame at 27%. This bullish continuation is the result of Elon Musk’s recent mentions of the coin.
Musk tweeted back on January 25 last year about how he will eat a McDonald’s happy meal if the fastfood company accepts Dogecoin as a mode of payment. Since then, the DOGE community has been putting pressure on the company as they show support for Elon’s proposal.
If McDonald’s ever implements DOGE as a mode of payment, the coin would have access to 40,031 restaurants while simultaneously adding a big name in the already large number of merchants that accept the coin as payment method.
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 the price action is certainly evident on the coin. Following that tweet, DOGE started a rally after it slumped by 34% in under a week. Now that Musk renewed his 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 the acceptance of the coin as a mode of payment. Matt Wallace, a huge crypto influencer, replied to Musk showing his support for McDonald’s acceptance of DOGE as a payment method:
McDonalds #Dogecoin Acceptance Coming!
— Matt Wallace (@MattWallace888) January 27, 2023
However, this bullishness does not consider McDonald’s side on whether it should accept Dogecoin, or crypto in 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 as this means investor confidence in the asset is high. However, DOGE’s market movement right now might be reminiscent of last year’s price increases when the billionaire tweets about the meme coin.
But it is no wonder that the industry is very bullish as Tesla, an electric vehicle company owned by Elon Musk, already accepts DOGE as a form of payment for Tesla merchandise.
Meanwhile, Dogecoin is trading at $0.0892 with more than enough leg room for a steady upward price movement. 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 nearing $24,000 and Ethereum (ETH) breaking $1.6k.
Featured image by Inc. Magazine