On Friday, Dogecoin price has soared by up to 15 percent after Elon Musk tweeted that Tesla is now accepting DOGE as a payment option for its merchandise.
With that, numerous DOGE investors are curious to know if the meme coin could experience another massive crash following the said increase.
Elon Musk Tweet Sparks Dogecoin Price Spike
The Tesla and SpaceX CEO is known for expressing his huge support for Dogecoin. Some of Elon Musk's tweets include SpaceX or Tesla updates, crypto memes and more.
In his latest tweet, the South African-born business mogul announced another interesting news that benefits both his company and the DOGE community. He sent out a tweet that says: "Tesla merch buyable with Dogecoin."
Tesla merch buyable with Dogecoin— Elon Musk (@elonmusk) January 14, 2022
After this official confirmation, numerous DOGE fans expressed their opinions and delight at this statement.
One of the said DOGE fans bought a Giga Texas Belt buckle through the said cryptocurrency, thanking Musk for an "incredible and the perfect way to encourage practical #cryptocurrency use."
With regards to the merch that interested Tesla fans could buy, the cryptocurrency--which began as a joke coin--could only be used to purchase a limited number of products.
The said merch includes a Tesla Cybertruck-shaped whistle that costs 300 doge, which is around $59 at the time of writing. A commemorative belt buckle honoring Tesla's Gigafactory in Texas is also on the market for 835 DOGE, or $164.
On the other hand, CNBC reported that Dogecoin price soared more than 15 percent on Friday after Musk's tweet.
Meanwhjile, Coindesk statistics showed that Dogecoin reached $0.20 per coin around 01:19 ET before reducing some of its gains. Meanwhile, at 07:06 ET, it was up more than nine percent to $0.18.
Last December, the richest man in the world tweeted that " Tesla will make some merch buyable with Doge & see how it goes." This only means that taking Dogecoin as payment is not surprising since it has been in the works already.
FXStreet also clarified that Tesla has not yet accepted this cryptocurrency as a payment method for its electric automobiles.
Previously, Tesla began taking Bitcoin payments in May 2021, but the electric vehicle manufacturer quickly ceased this due to environmental concerns. The Bitcoin network consumes a lot of energy through a process called mining, while DOGE utilizes less energy.
Dogecoin Price Prediction: Will It Crash Again After Latest Increase?
For those curious to know if the Dogecoin price will crash after its recent increase, a crypto expert and trader named @CryptoKaleo has claimed that Dogecoin's price would reach $0.24, per FXStreet.
The analyst added that the meme coin has positive potential.
In addition to this, Capital.com noted that the short-term Dogecoin price analysis from CoinCodex is optimistic at the time of writing. There were 24 positive indications and seven negative indicators. Data has been evaluated between $0.165 and $0.151, with resistance between $0.179 and $0.193.
On January 20, CoinCodex said it expects DOGE will trade at $0.23.
Longer-term projections indicate that the coin will take several years to surpass its previous all-time high of $0.74 and reach the $1 mark.
Despite these predictions, investors must keep in mind that cryptocurrency markets and meme currencies are pretty unstable, making it impossible to anticipate a coin's price in a matter of hours, and even more difficult to make long-term predictions.
As a result, experts can and do make mistakes in their forecasts.