Elon Musk Tweet Sends Dogecoin Price Spiking to New Highs; Will It Crash Again After Latest Increase?

On Friday, the price of Dogecoin rose by as much as 15 percent after Elon Musk tweeted that Tesla is now accepting DOGE as a payment option for its merchandise.

However, many DOGE investors are curious to see if the meme coin could suffer another massive crash after the aforementioned surge.

Elon Musk Tweet Sparks Dogecoin price hike

The CEO of Tesla and SpaceX is famous for expressing great support for Dogecoin. Some of Elon Musk’s tweets include SpaceX or Tesla updates, crypto memes, and more.

In his latest tweet, the South African-born business mogul announced another interesting piece of news that will benefit his company and the DOGE community. He tweeted: “Tesla Merch is purchasable with Dogecoin.”

After this official confirmation, many DOGE fans expressed their opinions and are pleased with this statement.

One of the mentioned DOGE fans bought The Giga Texas Belt is tied to the aforementioned cryptocurrency, thanking Musk for the “incredible and perfect way to encourage the practical use of cryptocurrency.”

In terms of merchandise that interested Tesla fans can buy, the cryptocurrency – which started as a joke currency – can only be used to purchase a limited number of products.

Said item includes a Tesla Cybertruck-shaped whistle that costs 300 dawgs, which is about $59 at the time of writing. A commemorative belt clip in honor of Tesla’s Gigafactory in Texas is also available for 835 DOGE, or $164.

On the other hand, CNBC reported that the price of Dogecoin rose more than 15 percent on Friday after Musk’s tweet.

Coindesk stats showed that Dogecoin reached $0.20 per coin around 1:19 ET before trimming some of its gains. Meanwhile, at 07:06 ET, it rose more than nine percent to $0.18.

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Last December, the world’s richest man chirp That “Tesla will make some items purchasable with Doge and see how it goes.” It just means that taking Dogecoin as a payment method is not surprising as it was already in the works.

FXStreet also clarified that Tesla has not yet accepted this cryptocurrency as a payment method for its electric cars.

Previously, Tesla began receiving Bitcoin payments in May 2021, but the electric car maker quickly stopped doing so due to environmental concerns. The Bitcoin network consumes a lot of energy through a process called mining, while DOGE uses less energy.

Dogecoin Price Prediction: Will it collapse again after the latest increase?

For those who are curious to know if the price of Dogecoin will collapse after its recent increase, crypto expert and trader His name is CryptoKaleo He claimed that Dogecoin would be priced at $0.24 per FXStreet.

The analyst added that the meme coin has positive potential.

Additionally, Capital.com notes that CoinCodex’s short-term Dogecoin price analysis is bullish at the time of writing. There were 24 positive and seven negative indicators. The data was evaluated between $0.165 and $0.151, with resistance between $0.179 and $0.193.

On January 20, CoinCodex said it expects DOGE to trade at $0.23.

Long-term forecasts are that the coin will take several years to break the all-time high of $0.74 and reach the $1 mark.

Despite these expectations, investors should keep in mind that the cryptocurrency and meme markets are highly unstable, making it impossible to predict the price of the coin within hours, and even making long-term predictions difficult.

As a result, experts can make mistakes in their forecasts.

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