The price of Dogecoin (DOGE) suddenly rose on December 14 after Tesla CEO Elon Musk announced that Tesla would start accepting some purchases.
DOGE/USD light 1 hour chart (Bittrex). Source: Trading View
Data from Cointelegraph Markets Pro and TradingView showed that DOGE/USD rose above 25%, becoming the only major cryptocurrency to gain today.
The meme-based altcoin followed Bitcoin (BTC) and other high-value tokens for a week, but the rolling operation gave DOGE holders a 10% weekly gain.
The move comes after Musk announced that the automaker will soon begin accepting DOGE for merchandise.
“Tesla wants to make some items available with the Doge and see how it goes,” he tweeted.
At the same time, Tesla is taking an unusual position, accepting only Dogecoin from all possible cryptocurrency options. Musk risks upsetting bitcoin supporters, especially after he later allowed the purchase of unqualified bitcoins for Tesla cars due to alleged environmental concerns.
After being named Person of the Year by Time magazine this week, Musk said Dogecoin is “better for transactions” than Bitcoin.
“The overall flow of transactions that you do with Dogecoin, in terms of daily transactions, has a much higher potential than bitcoin,” he said, adding to DOGE’s longstanding track record of public praise.
Jumping like a dead dog?
If you zoom out, the mood among analysts will be bleak when it comes to a broader return of the altcoin.
Related: Bitcoin Loses $48,000 on Wall Street as Trader Warns Altcoins Look ‘Live’ on BTC
With Bitcoin maintaining a 40% dominance of market capitalization and failing to reverse the same downtrend, there is currently little hope when it comes to fresh earnings for backers – at least this year.
“Some sentiment between June and July is starting to emerge in the markets where we are just hesitating, slowly moving towards the undercarriage as fans wait to get to a lower level that they are likely to miss,” Cointelegraph contributor Michael Fan said. De Pope made a more upbeat comment on Wednesday.
After the consolidation, DOGE/USD is back below $0.20 at the time of writing.
