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Dogecoin (DOGE) Faces Bearish Pressure, Co-creator Rallies Community

Dogecoin (DOGE) Faces Bearish Pressure, Co-creator Rallies Community

Posted Tuesday, August 3, 2021 by
Aiswarya Gopan • 2 min read

Leading memecoin Dogecoin (DOGE) is on a downtrend, slipping below the key $0.20 level after the crypto market turned bearish on account of Bitcoin’s weakness. At the time of writing. DOGE/USD is trading around $0.19.

The cryptocurrency which originally started as a joke but went on to become the seventh largest in terms of market cap has been facing significant criticism for failure to offer much versatility and use cases beyond being a payment method. However, its loyal followers maintain belief in the coin, comparing it with crypto king Bitcoin in terms of use cases, but with more energy efficient transaction processing capabilities.

The bearish moves in Dogecoin have been further bolstered after its Co-creator, Billy Markus, called out the DOGE community for a lack of participation in helping spread its adoption. According to him, fans of the coin appear to be showing ‘a lot of early signs of illness’ that could affect the potential longevity of community’s prospects. Markus’s letter drove Dogecoin’s social sentiment high during the previous session, making it the fourth most talked about crypto on Twitter but it failed to lift the spirits of the community and DOGE’s price higher.

Dogecoin, however, could find some support from a rise in its usage as an accepted payment method. For instance, recently, a fan of the coin put up his home for sale and announced that he would be willing to accept payments in DOGE. Similarly, last week, a coffee shop based in Louisville rebranded itself as Dogebeans and started accepting payments in DOGE and other cryptocurrencies, a move that could potentially drive up its usage.

Key Levels to Watch

On the 4-hour price chart of DOGE/USD, most of the moving averages and leading technical indicators MACD and momentum paint a bearish picture at the moment. The sentiment is likely to continue until the mood in the overall crypto market turns around.

DOGE/USD

For now, Dogecoin’s price is holding under the pivot point at $0.21 but just above the immediate support level at $0.18. An increase in selling pressure can send DOGE down under this level and to test the next support at $0.17 and then at $0.13.

 

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