Here’s why analysts believe bears are taking control of Dogecoin

Dogecoin price is struggling to break out of its downtrend and begin a recovery. Several influencers in the Dogecoin community recently criticized Binance’s staking program, and the exchange offered an explanation. 

Also read: Don’t stake Dogecoin on Binance: Developers warn DOGE holders

Dogecoin price is in a downtrend that started in May 2021

The largest meme coin in the crypto ecosystem is struggling to break out of a downtrend that began in May 2021. Dogecoin’s dominance is threatened by failed attempts by the crypto asset to invalidate the downtrend, to no avail. 

Last week Dogecoin started its recovery, and bulls gained control of the meme coin. Analysts expected DOGE to break out of its long-term resistance. However, the bullish momentum was short-lived. 

While Dogecoin price is nearly 6% higher than it was a week ago, the meme coin continues to disappoint holders. 

Binance offered clarification on Dogecoin staking

Binance’s new locked staking program for crypto assets, including Dogecoin, was heavily criticized on crypto Twitter. Binance addressed the concerns of users and shed light on the staking program. 

A Binance spokesperson explained that,

There is no on-chain staking of LTC and DOGE for network validation since these are non-proof-of-stake tokens. The user funds remain with Binance, and we have strict risk management controls to ensure security.

Analysts note Dogecoin is struggling to break out of multi-year downtrend

FXStreet analysts evaluated the Dogecoin price trend and pointed out that the meme coin is closer to breaking out of its multi-year trendline. Dogecoin has recouped losses over the past week, and the asset is now ready to break out of the downtrend. For price targets and more information on the trend line, check the video below: