- Dogecoin price tanks as bulls refrain from breaking important moving averages.
- DOGE is in negative mode as Musk tries to get his case ended.
- Expect to see more downside pressure in case headlines build against the billionaire.
Dogecoin (DOGE) price is tanking after some volatile moves this Monday in the ASIA PAC and European sessions. Traders are grasping to understand the late filing from Musk’s lawyers on Friday that could mean a systemic risk for Dogecoin. T court ruling that recently spoke in favor of the Commodity Futures Trading Commission’s (CFTC) view of cryptocurrencies and altcoins as commodities. All this puts Dogecoin in the middle of the storm and could see it tanking 20% if the judge rules in favor of Musk.
Dogecoin in eye of storm as Musk puts CFTC win on loose screws
Dogecoin price is taking the blame from several crypto traders and investors as last week’s sigh of relief on the CFTC court win about crypto being seen as a commodity (and thus not falling under Securities & Exchange Commission (SEC) control) could become obsolete. Musk is being sued for $258 billion by a few investors who blame him for pumping Dogecoin. Musk’s lawyers asked for the claim to be thrown out and added in their argumentation that Dogecoin is not a security or commodity, which undermines the recent court ruling in favor of cryptocurrencies falling under the umbrella of the CFTC.
DOGE is thus at risk of triggering a wave of new lawsuits and still being eligible to be sued by the SEC. Expect DOGE to undergo heavy selling and see bulls squashed against the green ascending trend line. Once that breaks, a full 20% implosion is set to occur with DOGE printing below $0.066.
DOGE/USD 4H-chart
The overall ruling from last week could still hold more importance and be seen as an overruling against any decision the judge might take in this more local case. If that occurs, expect a sigh of relief. No matter whether Musk wins or loses, as long as Dogecoin and its altcoin friends are deemed a commodity under the CFTC umbrella, all is fine for them. DOGE would quickly spiral higher and hit that $0.086 level for a retest and double top.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin extends gains after Fed cut interest rate
Bitcoin extends recent gains and trades above $62,000 at the time of writing on Thursday, following a 2.4% increase the previous day after the Federal Reserve’s (Fed) dovish decision to cut interest rates by 50 basis points.
Solana announces details of Seeker, second mobile device after Saga phone
Solana Lab’s second phone, Seeker, is set to launch in 2025. At Token2049, a global conference for crypto, Solana’s General Manager Emmett Hollyer said that the new mobile would be a “rewards magnet” for its users.
Is Altcoin season here?
Altcoin season is when cryptocurrencies other than Bitcoin see substantial price increases. On-chain data indicate that the Altcoin Season Index has further potential for growth.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin surges to $62,000 mark after 50 bps Fed rate cut
Bitcoin breaks and closes above 100-day EMA around $60,781, eyes for a rally ahead. Ethereum price approaches its key resistance level at $2,461; a close above would suggest a bullish move.
Bitcoin: On the road to $60,000
Bitcoin price retested and bounced off from the daily support level of $56,000 this week. US spot Bitcoin ETFs posted $140.7 million in inflows until Thursday and on-chain data supports a bullish outlook.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.