- Elon Musk's comments breathe fresh air into Dogecoin price recovery bid.
- Dogecoin should focus on maximizing the base layer transaction rate while minimizing transaction costs.
Dogecoin price tested support at $0.22 on Thursday after closing the day under $0.24 (crucial support). The meme coin has explored the rabbit hole within the confines of a parallel descending pattern since the all-time high of $0.75.
However, DOGE will likely end the week in the green and perhaps break the downtrend. Although in its initial phase, the ongoing recovery can be linked to comments made by Tesla Billionaire Elon Musk.
Elon Musk proposes a way to reduce Dogecoin transaction cost
The self-proclaimed "Dogefather" Elon Musk is back to tweeting about crypto and backing Dogecoin. In his latest tweet, Musk bashes Bitcoin and Ethereum for being "slow" with "high" costs while proposing a way he thinks could help DOGE achieve more.
"There is merit [in my opinion] to doge maximizing base layer transaction rate and minimizing transaction cost with exchanges acting as the de facto secondary layer."
However, regarding Bitcoin and Ethereum, Musk wrote:
"[Bitcoin and Ethereum] are pursuing a multilayer transaction system, but base layer transaction rate is slow, and transaction cost is high."
According to Musk, the Dogecoin upgrade is approaching, and it will elevate the meme coin "perfectly to become one of the most used currencies in the world."
Dogecoin price on the verge of a leg up
Dogecoin price teeters at $0.225 at the time of writing. A slight push above the descending could bolster DOGE upward. Trading above the support turned resistance at $0.24 may also affirm the bullish grip on the price. However, investors look forward to Dogecoin jumping over the confluence barrier at $0.3 created by the 100 Simple Moving Average (SMA) and the 200 SMA.
DOGE/USD 12-hour chart
In the meantime, the least resistance path is upward based on the short-term technical picture. For example, the Relative Strength Index (RSI) adds credibility to the bullish outlook after rebounding from the overbought area. A continued movement toward the midline will cement the bullish grip on Dogecoin, while closing the gap to the overbought region will mark the beginning of an uptrend.
The Moving Average Convergence Divergence (MACD) indicator, on the other hand, may also present a buy signal in the coming sessions. This call to buy will appear when the 12-day EMAV crosses above the 26-day EMA. Moreover, movement above the mean line may help validate the upswing toward $0.3.