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Why is Dogecoin (DOGE) Trading Bearish Today?

Why is Dogecoin (DOGE) Trading Bearish Today?

Posted Friday, June 18, 2021 by
Aiswarya Gopan • 1 min read

Dogecoin (DOGE) is on a slide lower, extending its bearish mood since the previous session, down by over 3% in the past 24 hours amid a somewhat downbeat mood among investors towards the market leaders Bitcoin and Ethereum. At the time of writing, DOGE/USD is trading around $0.30.

Crypto investors have turned somewhat wary on the back of the World Bank’s refusal to offer technical assistance to El Salvador towards implementing the use of Bitcoin as parallel legal tender within its economy. The World Bank highlighted environmental and transparency concerns as the reason behind its decision.

Dogecoin has also come under pressure after Thailand announced a ban on the trading of some cryptocurrencies, including this memecoin, as well as NFTs. While the nation has not banned all cryptocurrencies, it has taken this step to protect traders from losing their capital on highly speculative digital assets that lack “clear objective or substance”. This news is likely to impact DOGE adoption in the near-term.

However, the sixth largest cryptocurrency by market cap could find some support from recent reports about an uptick in its use cases. On-demand dog walking app Wag! announced recently that it would start accepting payments in crypto, including unsurprisingly, Dogecoin.

Key Levels to Watch

On the H4 price chart of DOGE/USD, moving averages as well as leading technical indicator MACD are signaling a bearish bias. The price is also holding beneath the pivot point at $0.33 at the moment, and not too far from the immediate support level at $0.28.

Looking ahead, a build-up of selling pressure could see Dogecoin not only weaken to $0.28 but also head further down towards the $0.25 level. On the other hand, if the sentiment picks up, we could see the price climbing higher above the pivot to test resistance at $0.37 and $0.41.

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