Every time the Dogecoin price rallies out of the blue, the cryptocurrency community splits into two camps. One group doesn’t believe this currency should still exist, whereas others will defend it tooth and nail. The current DOGE momentum is rather impressive, although chasing pumps is never advisable.
One could argue the current DOGE momentum is partially thanks to other crypto markets rallying. That wouldn’t be incorrect, although the values at which markets rise can differ. Bitcoin needs a lot more momentum to increase by 16% compared to Dogecoin, for example. Even so, one cannot deny the current Dogecoin price momentum is impressive in its own regard. Many expected the most recent pump to be its last, but that may have been a bit premature.
DOGE looks solid again after a steep 17.3% increase in USD value and a 12.6% gain in BTC value. Although it will not reach a new all-time high all of a sudden, this price increase can solidify a support level above the $0.3 level. In addition, it appears that prices are very similar across the many exchanges, which is a healthy overall sign. Price spreads are fine and dandy, but they also trigger tremendous volatility.
The current rally is aided by tremendous Dogecoin trading volume. While it is not unusual to see over $2 billion in DOGE trading, passing $6.1 billion is something else. Binance, OKEx, and Huobi Global are all contributing fair volume through their USDT pairs. Coinbase’s USD pair and Paribu’s TRY pair are the only two fiat pairs in the top 6.
As is often the case with Dogecoin, a price rally will coincide with Elon Musk tweeting. Playing markets on this large scale seems to still work in 2021, for some reason. It leads community members to expect a DOGE price of $1, which would require its value to triple from the current level. Not impossible, by any means, but it wouldn’t necessarily make much sense either.
As Musk told CNBC how the “Dogecoin community is the strongest” and “DOGE can serve as a medium of exchange”, the overall interest in this altcoin picked up again. However, it seems unlikely that Dogecoin will become a mainstream payment method, although it may find some niche use cases.
Speaking of niche use cases, BOTS now allows local car dealerships to accept cryptocurrencies like Bitcoin, Dogecoin, and others. The offer only applies to pre owned Tesla EV cars, giving crypto enthusiasts a chance of acquiring a second-hand Tesla without using fiat currency. In theory, this allows for buying a Tesla with DOGE, although one will need a substantial amount to match the price of such vehicles.
However, it remains essential to consider that car dealerships have this as an extra option. It never mentions any of them will enable cryptocurrency support, let alone payments in Dogecoin. Some may explore the waters, although it is not necessarily the use case to take cryptocurrencies into the mainstream.
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