Doge Price Falls Amid SEC Lawsuit

Doge coin has wrecked the yearly low, losing its gains made in 2023. Doge price gained bullish momentum during the month of march and started to rise after forming a support at $0.6550. This move caused a rally of roughly 66% and led to formation of support at $0.105 level. 

Currently, the cryptocurrency price is in strong bearish momentum and is hovering near the major support level of $0.0655 level, from where the bullish rally started for Doge coin in the month of march.

Doge coin price was stuck in a consolidation zone ranging between $0.07050 and $0.07500 level in the month of May. The previous candle gained enough bearish momentum to push price down to the current level. 

Dogecoin Sell-off Amidst SEC Lawsuit

Bitcoin and altcoins have witnessed a sharp drop on the news that the United States Securities and Exchange Commission filed a lawsuit against the biggest crypto exchange in the crypto industry, in the US district court of Columbia for unregistered securities operation. 

This lawsuit will probably lead to a delay in bitcoin and altcoins recovery as traders will remain on the side lines for a few days until clarity emerges.

The Federal reserve’s meeting which is scheduled on 14 june will also keep investors on hold. 

If doge price can gain bullish momentum, price might retrace toward the previous zone for retesting the support turned resistance level of $0.07050. On the other hand, if price breaks the lower wick of the previous candle, there is higher probability for the price to head toward the next support level of $0.05950 level causing a down fall of approximately -5.50%. 

Will Doge Price Decline Further? 

Doge price is trading below 20,50,100 and 200-day EMAs indicating bearish momentum in the price. Chaikin money flow score has crossed 0 mark negatively and is currently at -0.01 suggesting weakness in the market which can be concluded through price action. 

RSI is hovering just above the oversold zone and soon might enter into the oversold zone. RSI is currently at 30.31. Doge price is residing way below the lower band of bollinger indicating how strong is the bearish momentum. Currently there are no significant signs of pullback or reversal. Firstly, the digital asset price needs to form a support. 

The long/short ratio is 0.83 with 45.5% longs and 54.5% shorts indicating bearish sentiment hovering over doge price in the last 24 hours. 

Conclusion

The market structure and price action for Doge price is bearish after the release of news regarding a lawsuit filed against binance. The technical indicators are favouring the selling side but RSI and bollinger bands indicate a possibility of pullback if price is able to form a support. 

Technical levels

Major support: $0.06550 amd $0.05950 

Major resistance: $0.07050 and $0.07500 

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing

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