Dogecoin (DOGE) is showing signs of slight weakness as the optimism surrounding its acceptance as a payment option for purchasing Tesla merchandise from last week dies down. At the time of writing, DOGE/USD is trading around $0.165, up by more than 15% in the past week.

Late last week, self-styled Dogefather tweeted that his company Tesla had started accepting DOGE as payment for merchandise, sending his favorite memecoin higher by as much as 25%. However, it looks like the cryptocurrency has seen some profit taking since then, which has contributed to its weakness, erasing some of those gains.

DOGE Gets a DeFi Boost as THORChain Integrates Dogecoin

Even if the excitement around Tesla accepting DOGE as payment eases, Dogecoin could enjoy some buying interest in the market following THORChain’s latest announcement. According to its contributors, THORChain has fully integrated its features for Dogecoin, making it the first move for the memecoin in the world of DeFi.

The cross-chain liquidity protocol now supports a native DOGE liquidity pool, giving its users the opportunity to trade and earn yields on their holdings in the meme token. In addition to yield farming, DOGE users can also use THORChain to perform token swaps directly for BTC, ETH, BNB, LTC and BCH, multiple stablecoins as well as BEP-20 and ERC-20 tokens.

According to technical lead at THORChain, Chad Barraford, “For years, DOGE has stood still, while DeFi exploded in other ecosystems. Today that changes, as DOGE reaches a new level of self sovereignty by being able to enter and exit without being KYC’ed. This changes the fundamentals of the asset significantly both as a store of value and as a medium of exchange.”

DOGE/USD Technical Analysis

On the 4-hour chart of DOGE/USD, moving averages along with leading technical indicators MACD and momentum are suggesting a strong bearish bias. It looks like sellers remain in control in DOGE for now.

Dogecoin’s price is showing signs of weakness under the pivot point at $0.176 although it is still some distance from the immediate support at $0.137. Let’s keep a close watch on the support as it could come under threat if selling pressure builds up further.