Key points:
Dogecoin price surpassed $0.11 on October 11, a 7% increase, coinciding with the news that Elon Musk’s Tesla was launching a new line of self-driving electric vehicles.
Despite the sluggish price action, DOGE currently has 20 times more daily active users than Shiba Inu and 10 times more than Base’s top meme coin, DEGEN.
Tesla’s latest line of self-driving electric cars and personal assistant robots could provide new use cases for Dogecoin.
Dogecoin Price Analysis:
Dogecoin price surpassed $0.11 on October 11, up 7%, coinciding with the news that Elon Musk’s Tesla is launching a new line of self-driving electric vehicles. Can long traders take advantage of this milestone to rally to $0.15 again?
Dogecoin surges 7% amid Tesla's unveiling of its latest Robotaxi electric car
On October 10, Dogecoin price broke out of a week-long downtrend as Tesla unveiled its latest personal assistant robot and self-driving robotaxis at an event in California.
The landmark event captured global attention, with millions watching Musk's live stream as he laid out his ambitious plans for fully self-driving, artificial intelligence-driven mobility.
The yellow patch in the DOGEUSD price chart below shows how the DOGE price rose 6.7% in the 20 hours following the Tesla event in San Francisco, breaking through the $0.11 resistance level.
Dogecoin price rises 7% as Elon Musk unveils Tesla's self-driving electric car | TradingView
Dogecoin’s price rose 7% on October 10, mirroring the historical bullish pattern between Tesla’s announcement and DOGE’s price action.
Over the past four years, Tesla product launches and announcements, often driven by Elon Musk, have coincided with significant increases in Dogecoin (DOGE) prices.
Here are some key events:
1. Tesla Merchandise Acceptance (January 2022): Tesla began accepting Dogecoin for select merchandise, which immediately caused Dogecoin to rise by more than 20%. This was the first time Tesla directly integrated DOGE into a payment option for a specific product, sparking widespread interest and a price surge.
2. Elon Musk acquires Twitter (October 2022): While not a direct product launch from Tesla, Musk’s acquisition of Twitter sparked speculation that Dogecoin could be integrated into Tesla’s payments or Twitter’s monetization. As Musk continued to publicly support Dogecoin, DOGE surged by about 40% in the days following the announcement.
3. Tesla Investor Day (March 2023): Just before Tesla’s Investor Day in early 2023, Dogecoin rallied again, flipping other cryptocurrencies like Polygon and Binance USD in market cap.
4. Dogecoin Payments Reintroduced (August 2024): After a legal victory in a Dogecoin-related lawsuit, Elon Musk reiterated that Tesla will resume Dogecoin payments for goods.
Among them, these key events highlight the strong correlation between Tesla announcements and Dogecoin price movements, which is largely influenced by Musk’s personal support for cryptocurrencies.
Dogecoin network usage surges 120% after Tesla incident
Dogecoin has performed quite poorly relative to 2024 with Pepe, WIF and Bunker all testing new all-time highs. This has raised major concerns that the newer trendy Solana memes could cannibalize the market share of traditional blue chip memecoins like DOGE and Shiba Inu (SHIB Restaurant).
However, on-chain data trends show that Dogecoin’s user engagement remains relatively stable and continues to lead in several on-chain metrics.
DOGE currently has 20 times more daily active users than Shiba Inu and 10 times more than Base’s top meme coin, DEGEN. This confirms that Dogecoin still holds the lion’s share of investor mindshare in the meme coin space.
IntoTheBlock research.
Tesla’s latest line of self-driving electric cars and personal assistant robots could provide new use cases for Dogecoin. If these autonomous products are traded in an economical manner, Dogecoin could become a key payment channel for fast and secure transactions.
Dogecoin Price and Daily Active Addresses (DAA) | Walk Into the Blockchain
According to data from IntoTheBlock, Dogecoin’s on-chain activity surged following Tesla’s announcement. As mentioned above, daily active addresses interacting on the DOGE network surged by more than 120% in 24 hours, from 48,520 on October 9 to 134,250 on October 10.
Notably, Elon Musk obtained payment transmitter licenses in three US states earlier this year, further adding credibility to bullish speculation. If Tesla officially uses Dogecoin for its autopilot system, DOGE could see significant network activity and price gains.
Clearly, the 120% surge in DOGE network activity suggests that strategic traders may have already bet on this bullish outlook. If the positive momentum picks up, the Dogecoin price could be on the verge of another 50% surge to reclaim the $0.15 region.
Dogecoin Price Prediction: Two Technical Signals Suggest a Breakout Above $0.15
Dogecoin’s recent price action suggests that the cryptocurrency could be ready for a major breakout, with technical indicators pointing to a possible rally to $0.15 in the coming days. Two key technical signals offer clues to this possible move.
First, the Bollinger Bands indicate increased volatility as the DOGE price hovers above the $0.10 middle band, which is a dynamic support level. The recent price move above $0.11, coupled with the expansion of the bands, means that Dogecoin is ready to potentially push higher.
Dogecoin Price Prediction | Dogecoin to USD
Expanding bands usually signal bigger price swings and going by the current trend, DOGE could target $0.15 if the bulls maintain their momentum.
Secondly, the Relative Strength Index (RSI), currently at 51, shows a neutral but slightly bullish bias. The rising trajectory of the RSI suggests increasing buying pressure. If the RSI rises above the 60 level, it will confirm a strengthening of bullish momentum.
If these technical signals align with favorable market conditions, including taking advantage of recent Tesla-related events and increasing Dogecoin network activity, DOGE could surge by 50%, pushing it to test the critical resistance level of $0.15 in the near term.
It should be emphasized that this article is for reference only and does not constitute investment advice.
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