Dogecoin (DOGE) Network Usage Spikes 120% as Elon Musk’s Launches Tesla Robot EVs

Dogecoin Price Analysis: 

Dogecoin price broke above $0.11 on Oct 11, in a 7% rally coinciding with news of Elon Musk’s Tesla launching a new line of self-driving EVs. Can bull traders capitalize on this milestone event to spark another leg-up towards the $0.15?

Dogecoin Price Surges 7% Amid Tesla’s Latest Robot EVs Launch

On October 10, Dogecoin price snapped out of a week-long downtrend as Tesla introduced its latest personal assistant robots and self-driving robo taxis at an event in California.

The landmark event attracted global attention, with millions watching event live as Musk’s reeled out an outline of ambitious roll-out plans for fully-autonomous AI-driven mobility.

The yellow-patch in the DOGEUSD price chart below shows how DOGE price rose  6.7%, breaching the $0.11 resistance, within 20-hours after the Tesla event kicked-off in San fransisco.

Dogecoin’s 7% price gains on Oct 10, echoes historical bullish patterns between Tesla’s announcements and DOGE price movements.

Over the last four years, Tesla product launches and announcements, often driven by Elon Musk, have coincided with notable Dogecoin (DOGE) price rallies.

Here are some key events:

1. Tesla Merchandise Acceptance (January 2022): Tesla started accepting Dogecoin for select merchandise, which immediately led to a Dogecoin rally of over 20%. This was the first time Tesla directly integrated DOGE into its payment options for specific products, sparking widespread interest and a price surge.

2. Elon Musk’s Twitter Acquisition (October 2022): While not a direct Tesla product launch, Musk’s acquisition of Twitter led to speculation that Dogecoin could be integrated into Tesla’s payments or Twitter’s monetization. DOGE saw a significant rally of about 40% in the days following the announcement, as Musk continued to support Dogecoin publicly​.

3. Tesla’s Investor Day (March 2023): Right before Tesla’s Investor Day in early 2023, Dogecoin again rallied, flipping other cryptocurrencies like Polygon and Binance USD in market cap.

4. Dogecoin Payments Reintroduction (August 2024): After a legal victory in a Dogecoin-related lawsuit, Elon Musk reaffirmed that Tesla would bring back Dogecoin payments for merchandise.

Among others, these key events highlight the strong correlation between Tesla announcements and Dogecoin price movements, largely influenced by Musk’s personal support of the cryptocurrency.

Dogecoin Network Usage Surged 120% after Tesla Event

Dogecoin performance in 2024 was considerably subdued, relative to the likes of PEPE, WIF and BONK all of which tested new all time-highs. This has raised major concerns that newer-trendier Solana memes may be encroaching on market share of legacy blue-chip meme coins like DOGE and Shiba Inu (SHIB).

However, on-chain data trends show that Dogecoin’s user-engagement has remains relatively stable, and continues to lead in several on-chain metrics.

DOGE currently has 20x more daily active users than Shiba Inu and 10x more than DEGEN, Base’s top memecoin. This confirms that Dogecoin still maintains lion-share of investor mindshare within the memecoin sector.

• Juan Pellicer, Senior research analyst – IntoTheBlock.

Tesla’s latest range of autonomous EVs and personal assistant robots could present a fresh use cases for Dogecoin. If these autonomous products transact economically, Dogecoin could emerge as a key payment rail for fast, secure transactions.

According to IntoTheBlock data, Dogecoin on-chain activity spiked in tandem with Tesla’s announcement. As seen above daily active addresses interacting on the DOGE network surged by more than 120% in 24-hours, rising from 48,520 on October 9 to 134,250 on October 10.

Notably, Elon Musk acquired payment transmitter licenses in three US states, earlier this year, further adding credence to the bullish speculations. Should Tesla officially adopt Dogecoin for its autonomous systems, DOGE could see significant network activity and price gains.

Evidently, this 120% surged in DOGE network activity suggests strategic traders may already be betting on this bullish outlook. If the positive momentum grows, Dogecoin price could be on the verge another 50% leg-up towards reclaiming the $0.15 territory.

Dogecoin Price Forecast: Two Technical Signals Hint at a $0.15 Breakout

Dogecoin’s recent price action suggests that the cryptocurrency could be poised for a significant breakout, with technical indicators pointing towards a potential rally to $0.15 in the coming days. Two critical technical signals are providing clues for this possible move.

Firstly, the Bollinger Bands indicate increasing volatility as the DOGE price hovers above the middle band at $0.10, a dynamic support level. The recent price movement above $0.11, combined with the expansion of the bands, implies that Dogecoin is primed for a possible upward push.

The expanding bands typically signal greater price swings, and with the current trend, DOGE could aim for $0.15 if bulls sustain momentum.

Secondly, the Relative Strength Index (RSI), which currently stands at 51, shows a neutral but slightly bullish bias. The upward trajectory of the RSI suggests increasing buying pressure. Should the RSI rise above the 60 level, it would confirm growing bullish momentum.

If these technical signals align with favorable market conditions, including capitalizing on recent Tesla-related events and rising Dogecoin network activity, DOGE could experience a 50% surge, propelling it to test the key $0.15 resistance in the near term.