Dogecoin Price Breaks Resistance, Setting the Stage for Potential Gains
The price of Dogecoin has successfully surpassed the resistance level at $0.062, which has now become a support level. This breakthrough has provided a springboard for potential gains, with the possibility of reaching $0.1. Bulls are demonstrating determination in their efforts to facilitate a recovery, especially as DOGE is currently positioned above two significant moving averages: the 50-day Exponential Moving Average (EMA) at $0.06229 and the 100-day EMA at $0.06418.
Will Dogecoin Price Sustain Its Uptrend?
Dogecoin’s price has been gradually turning bullish throughout September. As the ninth-largest cryptocurrency with a market capitalization of $8.8 billion, it has successfully tested support at $0.06 and weakened resistance at $0.062, while currently facing congestion from sellers at $0.063.
If traders show interest and enter long positions in DOGE, the uptrend could become unstoppable. The Moving Average Convergence Divergence (MACD) indicator is providing a buy signal, indicating that the recovery may continue, particularly if bulls can maintain support within the range of $0.062.
To assess the viability of the uptrend, traders will be watching for a daily close above the immediate resistance level of $0.063. A sustained breakout would suggest that Dogecoin price possesses enough momentum to potentially climb to the 200-day EMA and retest the grey band at $0.065. If movement extends beyond this range limit, it could trigger a buying spree among investors aiming for highs above $0.1.
How Will Dogecoin Price Fare After the FOMC Meeting?
The upcoming meeting of the United States Federal Open Market Committee (FOMC) from Tuesday to Wednesday will determine the next decision on monetary policy. With inflation concerns, another interest rate hike is possible, which could impact the crypto market negatively. The cost of crude oil has driven commodity prices higher, and the Fed may take a strong stance against inflation.
However, such a strict monetary policy could lead to a market-wide sell-off, potentially affecting DOGE. In this scenario, a retracement below the support level at $0.062 is projected. The 50-day EMA and the 100-day EMA may provide some protection for investors against this potential sell-off, but if necessary, the downtrend might extend to the primary support level at $0.06.
Choosing Between DOGE and SHIB
Investors deciding between Dogecoin (DOGE) and Shiba Inu (SHIB) may want to consider DOGE’s performance over the past year. According to a comparison chart provided by the New York Department of Financial Services (DFS), Dogecoin has outperformed Shiba Inu in terms of price. This suggests that investing in DOGE would yield a higher return on investment compared to SHIB.
New York Regulator Excludes DOGE from Green List
The New York Department of Financial Services (DFS) has removed Dogecoin and XRP from its green list of approved tokens as part of its efforts to strengthen oversight of digital assets. Through its VOLT initiative, the DFS aims to enhance regulation within the crypto market. The updated coin-listing guidelines focus on evaluating risks associated with crypto tokens while introducing new guidelines for businesses serving retail customers. Only eight digital assets have made it onto the new DFS green list, with both XRP and Dogecoin being excluded.
Hot Take: Dogecoin’s Potential for Growth
Dogecoin’s recent price movements and its position above key moving averages indicate the potential for further gains. However, the outcome of the FOMC meeting and any resulting market sell-off could impact DOGE’s price trajectory. Investors should carefully monitor these developments to make informed decisions. Additionally, the exclusion of Dogecoin from the DFS green list highlights regulatory challenges that may affect its future growth. Nevertheless, Dogecoin’s performance compared to other tokens, such as Shiba Inu, suggests that it remains an attractive investment option.
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