rare pattern points to a 20% DOGE dip
– Dogecoin price has moved sideways in the past few days.
– The coin has formed a bearish flag pattern on the daily chart.
– There is a likelihood that it will soon have a bearish breakout.
Dogecoin price has moved sideways in the past few days as the recent sell-off eased. The DOGE coin was trading at $0.061, where it has been at in the past few days. This price is sharply lower than the year-to-date high of $0.1052.
Regulations and monetary policy
Dogecoin price has been flat recently as investors assess several important events. First, there are concerns about the regulatory status in the US and other Western countries. The SEC has already sued companies like Binance and Coinbase, as we wrote here.
Other countries are cracking down on crypto exchanges. For example, Binance recently announced that it was exiting its Netherlands operations. The UK and France are also investigating the company. As such, there is a likelihood that the industry will see more outflows in the coming months.
Dogecoin seems to be safe during all this since the SEC has not declared it as a financial security. Instead, because of how it works, the coin could be classified as a commodity. Unlike Shiba Inu, Dogecoin is a proof-of-work coin that has no staking features.
Therefore, there is a likelihood that Dogecoin will benefit if exchanges decide to delist tokens that are seen as securities.
Dogecoin price is also reacting to the latest monetary policy news. The Federal Reserve decided to leave interest rates unchanged last week. With inflation falling, there is a likelihood that the bank will continue pausing for the rest of the year.
Meanwhile, the recent news that Blackrock has applied for a Bitcoin spot ETF is a positive thing for Dogecoin price. It is positive news because it is helping to ameliorate the recent regulatory challenges in the industry.
Dogecoin price prediction
The daily chart shows that DOGE price has been in a strong bearish trend in the past few weeks. As it dropped, the coin remained comfortably below the important 25-day and 50-day exponential moving averages.
Dogecoin is now sitting at an important support level, which was the lowest level on March 10th of this year. It has also formed a bearish flag pattern, which is usually a bearish sign. Therefore, there is a likelihood that the coin will continue falling as sellers target the next key support level at $0.05, which is about 20% below the current level.
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