Elon Musk Breaks Silence on Dogecoin (DOGE): Is Dogecoin's $1 Price Target Now Bearish?

DOGE

0.41647

+5.05%

Tesla Inc. CEO Elon Musk has been a fan of DOGE for some time. He first discussed the project in 2019 when he posted on social media, "Dogecoin might be my favorite cryptocurrency. It's pretty cool."

While this post didn’t have much of an impact on DOGE at the time, Musk continued to post about the token. He posted a meme about DOGE adoption in July 2020 that was captioned “It’s inevitable.” After several years of posts, the token skyrocketed in 2021, reaching an all-time high of nearly $0.74.

#Dogecoin‏⁩

If you invested $100 in DOGE when Elon Musk first tweeted about it in 2019, here's how much you'd have today.

Bitcoin is up nearly 50% this year – how much would you need to get started today?

It's clear that Musk's opinion on the memecoin is valued in the crypto community, and the price of DOGE is reacting to his comments.

It’s no surprise, then, that Musk’s latest comments on DOGE have caused a stir in terms of the token’s price. Musk was in Germany this week, speaking at Tesla’s gigafactory in Berlin, which recently reopened after a fire attack.

During a Q&A session, Musk was asked, “When will I be able to buy a Tesla with Dogecoin?” He replied, “At some point, I think we should enable that.”

Musk also detailed some of the reasons behind his support for DOGE. "The reason I ended up kind of supporting Dogecoin is when I was walking around the Tesla factory, some people asked me to support Doge. Then at SpaceX, some regular guys said, 'Can you support Doge?' and I said, 'Doge is the people's cryptocurrency, so I'm going to support it.'"

Musk also noted that you can buy Tesla merchandise with DOGE, so there are some systems in place to facilitate DOGE transactions.

Another important point is that Tesla accepted Bitcoin for Tesla car purchases for a short period in 2021. However, the program quickly ended, with Musk citing environmental concerns as the reason for stopping accepting Bitcoin. This is important because DOGE is a fork of Bitcoin, meaning it uses the same consensus method (proof of work) that Bitcoin uses, thus posing the same environmental risks that Musk mentioned in 2021.

This means that electricity usage could be a hindrance for DOGE in terms of being able to use it to buy a Tesla car.

Despite this, Musk's word must be taken literally. DOGE reacted strongly, moving from a low of $0.165 on the morning of March 14 to a high of $0.191, resulting in a gain of over 15%. The token fell in the afternoon, but sentiment is still largely bullish. Will Dogecoin Rise If Tesla Starts Accepting DOGE? Let's say a $1 price target wouldn't be out of the question.$DOGE

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