Dogecoin Takes a Dive as SEC Ruled on Coinbase and Binance

• Dogecoin has sustained bearish slumps following the crackdowns on Binance and Coinbase.
• While not named security, the potential for future growth remains high.

Things are not looking so great for Elon Musk-linked memecoin Dogecoin (DOGE), especially after the Securities and Exchange Commission (SEC) focused its crypto crackdown on Binance and Coinbase. Compared to its closing price of $0.07 on Wednesday, DOGE price has dipped further and is currently trading at $0.06752. This indicates that the token is down by 3.40% within the last 24 hours. 

Unfortunately, this was the case with other tokens since the first lawsuit was announced on Monday. In the few hours following the enforcement actions, Bitcoin (BTC) fell to $25,400, Ethereum (ETH) plunged by over 5%, Binance exchange’s token BNB, and Solana native token SOL dipped by 10% while Litecoin (LTC) slipped by 9%. Cardano (ADA), and Polygon (MATIC) slumped 9% to $0.7621.

However, BTC displayed the utmost resilience and started recovering after the Binance crackdown. By Tuesday, the leading cryptocurrency by market capitalization had recouped to the point that it retested the $27,000 resistance point. Notably, this was the first time it was returning to its price level, thereby indicating a value recovery process. At the time of this writing, Bitcoin is trading at $26,437.75, down by 1.58% in the last 24 hours.

The United States regulator sued Binance and its Chief Executive Officer (CEO) Changpeng “CZ” Zhao for violating securities rules, misleading investors and regulators, and mishandling customer funds. Markedly, these charges are somewhat similar to those levied against Bahamian-headquartered FTX and its then-CEO Sam Bankman-Fried. 

Also, the SEC said Binance allegedly flouted basic KYC rules and allowed Americans to improperly open accounts and trade on its platform. 

Coinbase was indicted for operating as an unregistered broker and exchange operator, thereby violating regulatory requirements in the U.S. Some tokens including SOL, AXS, COTL, MANA, ADA, MATIC, and SAND amongst others were listed as securities in these lawsuits.

Dogecoin Sees Huge Decline From All-Time High

While the SEC ruling on Binance and Coinbase may have shaken the broad crypto industry, it is however worth noting that DOGE has been having some trouble making a definitive bullish move recently.

As of Wednesday, May 31st, the price performance of Dogecoin was showing red in the charts and investors were considering other alternatives like Pikamoon, a new memecoin. Dogecoin has fallen by more than 90% from its all-time high and is still on a downtrend. 

Analysts feared that the DOGE token would remain bearish considering its higher timeframes. A bull run was projected possible for DOGE should it overcome the $0.08 price level. 

As regards DOGE, investors are not currently in profit but at the same time, these analysts believe that investors may start acquiring the token and expanding their DOGE holdings in preparation for a bull run which may eventually transact into 10x profit. Looking at the bright side, the token may rally as high as $0.177 depending on some fundamentals including a high influx of investors.

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