Dogecoin gains 25% after Elon Musk confirms Tesla will accept DOGE for merchandise

Dogecoin (DOGE), saw an abrupt price rise on December 14, after Tesla CEO Elon Musk announced it would be accepted for certain purchases.

Chart of 1-hour candle chart for DOGE/USD (Bittrex). Source: TradingView

TradingView and Cointelegraph Markets Pro data showed that DOGE/USD rose over 25% to become the largest cryptocurrency to show gains.

Although the meme-based altcoin had been following Bitcoin (BTC), and other large-cap tokens down over the course of the week. However, DOGE holders saw a turnaround that gave them 10% weekly gains.

Musk had announced that Musk would soon accept DOGE as merchandise.

He tweeted, “Tesla will make some merchandise buyable with Doge and see how it goes.”

Tesla will sell some merchandise with Doge. Well see how it goes.
— Elon Musk (@elonmusk), December 14, 2021

Tesla takes the unusual step of only accepting Dogecoin as a cryptocurrency option. Musk is at risk of irritating Bitcoin supporters, especially since he previously allowed disqualified BTC purchases for Tesla cars over alleged environmental concerns.

Musk, who was named Time Magazines “Persona of the Year” this week declared that Dogecoin is “better-suited for transactions” than Bitcoin.

He stated that Dogecoins total transaction flow, such as transactions per day is more than Bitcoin. This adds to the long-standing public praise for DOGE.

Dead-dog bounce?

However, analysts are not optimistic about a wider altcoin revival.

Related: Bitcoin loses $48K at Wall Street as a trader warns altcoins to lookrekt.

While Bitcoin maintains its market dominance of 40%, it is failing to reverse its downtrend. There is little hope for bagholders when it comes to new gains — at least not this year.

“Starting to feel some June/July emotions on the markets where were just cutting around, slowly consolidating towards an upper level, while the masses is waiting for lower levels to be hit which theyll likely miss,” Cointelegraph contributor Michael van de Poppe predicted in a more optimistic commentary Wednesday.

After consolidating, DOGE/USD was below the $0.20 mark as of the writing.

Lillian Call

I am a technology and gaming writer by profession. I love NFT's and play to earn gaming such as Axie Infinity. I love writing about anything on the blockchain, especially gaming and entertainment. I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.