Analyst Announces 4 Reasons Dumping DOGE and Next! - News-Credit-Mortgage-Coin


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Thursday, September 9, 2021

Analyst Announces 4 Reasons Dumping DOGE and Next!


The Dogecoin (DOGE) price has been down in the past few days as sales in cryptocurrencies accelerated. The most famous meme-coin has dropped from its highest level in the last seven days at $0.31 and is changing hands at $0.2548. So what's next for cryptocurrency? Here are the details…

Sales wave affecting cryptocurrencies also hit Dogecoin (DOGE)

A huge sea of red has been seen in the cryptocurrencies industry. As reported, Bitcoin, the world's largest cryptocurrency, fell to around $46,000, well below this week's high of $52,000.

Similarly, Ethereum dropped from $4,000 to the current $3,445, while Cardano fell more than 7 percent to $2.5. Cryptocurrency watchers are still trying to unravel the reasons for the ongoing sell-off. So, what were the events that triggered the sale? Analyst Chrispus Nyaga explained.

Here are the four reasons behind the sales

First, some believe the selloff is mostly due to profit making, considering that cryptocurrencies have more than doubled in the past few weeks. Indeed, prior to the current sale, Dogecoin rose more than 117 percent from its low in July.

Second, analysts believe that the popular concept of “selling news” is influencing cryptocurrencies. The biggest topic this week was the news that the El Salvador government has purchased more than $20 million in Bitcoin. Therefore, most traders “sell the news” as they wait for the government's next move. Third, the Dogecoin price also fell after the SEC threatened to sue Coinbase for launching a digital loan product. The SEC also sent a subpoena to the company.

Fourth, the resurgent US dollar is also believed to have significantly lowered the price of Dogecoin. The US dollar index rose more than 0.20 percent on Wednesday, a day after it rose more than 0.40 percent. This growth also pushed down other assets such as stocks and commodities.

Dogecoin price prediction: Levels to watch

According to crypto analyst Chrispus Nyaga, the daily chart shows that Dogecoin price is at risk of a major meltdown even before this sell-off. The coin has formed a double-topped pattern with a neckline of $0.2635. It fell below this neckline on Tuesday and fell to its lowest level since August 7. Along the way, Dogecoin managed to break below the 25-day and 50-day exponential moving averages (EMA).

Therefore, the analyst expressed his suspicions that the coin will continue its downtrend as investors target the next key support at $0.200. A move above $0.30 will invalidate the bullish view.


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