|

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

  • Dogecoin price made several unsuccessful attempts to break out of the downtrend that started in May 2021. 
  • Binance clarified that the Dogecoin tokens locked by users in the staking program remain with the exchange. 
  • Analysts argue that bears are taking control of Dogecoin as the meme coin struggles to breach its multi-year trend line. 

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:

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

More from Ekta Mourya
Share:

Editor's Picks

Ripple eyes $1.50 breakout despite softening on-chain activity

XRP remains elevated near $1.45 after a sharp spike from the weekly low of $1.31. XRP retains a neutral-to-bullish technical outlook, supported by the RSI and uptrending moving averages.

Zcash Price Forecast: Rally hits nine-year high above $1,000 amid growing shielded demand

Zcash trades above $1,000 on Friday, building on its 16% gain from the previous day. On-chain data show a steady increase in shielded supply to 4.86 million ZEC tokens, pointing to growing demand for privacy.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast.

Crypto Today: Bitcoin, Ethereum, XRP recovery takes a breather amid capital inflows

Bitcoin corrects lower toward $80,000 after testing highs at $81,269, supported by $731 million in ETF inflows. Ethereum bulls push to regain momentum, with $2,500 providing immediate support.

Bitcoin: Gearing up for a sharp move
Bitcoin (BTC) is trading around $81,000 on Friday, up over 4% so far this week, and awaits a key catalyst that could determine its next directional move. Strong institutional demand is supporting the bullish price action, with spot BTC Exchange Traded Funds (ETFs) on track to record a third straight week of inflows.