Tuesday 05 October Dogecoin (quotation DOGE) was up, posting double-digit gains in the past few hours, as investors encourage Bitcoin prices to rise during the previous session. At the time of writing, DOGE / USD is trading at around $ 0,237.
The mood in the cryptocurrency market received a significant boost Monday after Bitcoin prices surged over $ 49.000 and now traders are waiting to see if they can test and even surpass $ 50.000. As the leading cryptocurrency by market cap, moves in Bitcoin play a key role in driving market sentiment, causing other digital assets to move in a similar fashion. The memecoin DOGE shares a close correlation with BTC, rising when it rises and falls when it is traded lower.
The Elon Musk effect on Dogecoin
However, sentiment is not the key factor driving the current rally on Dogecoin. The cryto community cheered on Elon Musk's latest tweet about his dog Floki adopting a Tesla car. The reason for the cheering is that the Doge's army is taking this as a positive sign that Musk's company, Tesla, may be preparing to start accepting payments in DOGE. As a huge memecoin fan, Elon Musk has often referred to himself as the Dogefather, resulting in significant volatility in his price whenever he shares cryptocurrency-related updates on social media.
DOGE's price got another boost after billionaire and another major promoter, Mark Cuban, praised the cryptocurrency during a recent interview. Speaking with Fox Business on Monday, Cuban noted, “There are a lot of people paying [with] Dogecoin. We sell thousands and thousands of dollars a month during the off-season, and once the season starts I expect it to happen a week in Dogecoin - and that's really because it's easy to spend, it doesn't appreciate so much that people want to keep it forever. "
Meanwhile, on the fundamentals front, an interesting development related to NFT could increase the use of DOGE in the near future. ElonVerse - a meme-based NFT project with over 10.000 unique funny Elons, is ready for launch on Binance Smart Chain. Investors in ElonVerse NFTs can also generate passive income in Dogecoin, getting 5% of the token value they hold in DOGE.
Key levels to keep an eye on
On the DOGE / USD 4-hour price chart, the moving averages and MACD suggest a bullish bias. However, other leading technical momentum and Stochastic RSI Fast indicators also indicate some selling interest.
The Dogecoin price is holding above the pivot point at $ 0,214 and the first resistance at $ 0,233. The increase in buying pressure may soon see a test of the second resistance at $ 0,246, a break above which can take DOGE above the key $ 0,25 mark to the resistance at $ 0,278.
