Dogecoin (DOGE/USD) Violates $0.2097 Support – Who’s up for a Sell Trade?

The DOGE/USD closed at $0.208000, after placing a high of $0.218900, and a low of $0.204390. The DOGE/USD pair remained on the back foot during Monday’s trading session, following the trend of the crypto market and the strength in the US dollar. Dogecoin suffered when the social media giant, TikTok, updated its Branded Content Policy which now prohibits users of the platform from participating in the paid promotion of financial services. This particularly includes cryptocurrencies like Bitcoin and Dogecoin.

The move came in after a group of TikTokers on the platform kept posting viral videos to drive up the prices of Dogecoin to $1. In recent months, TikTok has become a significant driver of some of the recent cryptocurrency price rallies. However, it is still unclear how the new rules will impact the unpaid promotion of cryptocurrencies and other financial products. Furthermore, Elon Musk has suggested that the meme-crypto will become superior to BTC and ETH, after the upcoming update in the network. According to sources, the new update is expected to boost transaction speeds on Dogecoin’s base layer transactions, while bringing down the fees associated with the transactions.

Questions were raised: Is Dogecoin already 15 times faster than Bitcoin, and will increasing the speed be difficult. In response to this, Musk said that the block size and frequency would be increased steadily so that they could match the broadly available bandwidth. However, the bitcoin community criticized the process claimed by Musk, saying that he had forgotten that DOGE was merge-mined with Litecoin, and to boost the transaction speed of the meme-coin, the developers might need to hard-fork Dogecoin from Litecoin.

These negative comments put pressure on the value of the DOGE/USD, and as a result, the cryptocurrency fell on Monday. Moreover, the cryptocurrency also came under pressure as the US dollar gained strength across the market. The focus of investors shifted towards the release of the upcoming CPI report on Tuesday, which kept the US dollar high for the day, weighing on the DOGE/USD, as there is a negative correlation between them.