Dogecoin price has been trading sideways in recent days, with the coin currently sitting at a price of $0.061. This is significantly lower than its year-to-date high of $0.1052. Investors are reacting to a few key events, such as regulatory news from the US and other Western countries, as well as the Federal Reserve’s decision to leave interest rates unchanged.
The SEC has already sued companies like Binance and Coinbase, and other countries are also cracking down on crypto exchanges. This could result in more outflows from the industry in the coming months.
Fortunately, Dogecoin is unlikely to be affected by these regulatory changes since it is not considered a financial security. It is a proof-of-work coin that does not have any staking features, thus it could be classified as a commodity.
The recent news that Blackrock has applied for a Bitcoin spot ETF is also a positive thing for Dogecoin price, as it is helping to ameliorate the recent regulatory challenges in the industry.
Looking at the daily chart, Dogecoin price has been in a strong bearish trend in the past few weeks. It remains comfortably below the important 25-day and 50-day exponential moving averages. It has also formed a bearish flag pattern, suggesting it might have a bearish breakout soon.
If the bearish breakout happens, Dogecoin could target the next key support level at $0.05, which is around 20% below the current level.
To purchase Dogecoin, you can use either eToro or LiquidityX. Be sure to read the disclaimer before investing.
