How will Dogecoin’s darknet popularity affect DOGE price?
- Dogecoin price shows an affinity to climb with the 8-day EMA acting as its support.
- A 17% upswing seems likely for DOGE if buyers continue to persist.
- A four-hour candlestick close below $0.057 will invalidate the bullish thesis.
Dogecoin price seems to be having a good time since June 19 and shows no signs of slowing down. However, a recent study from Elliptic Connect shows that DOGE is increasingly being used in darknet marketplaces.
Darknet DOGE gains popularity
This is not the first time DOGE has gained popularity or adoption. Tesla CEO Elon Musk has been an avid supporter of the meme coin. Furthermore, Ukraine accepted Dogecoin donations when Russia attacked. So it should not come as a surprise that bad players are using DOGE to transact on the dark web.
The report from Elliptic notes that “millions of dollars worth of Dogecoin transactions” were observed connecting illicit activities, ranging from Ponzi schemes to child sexual abuse material. Dogecoin was also part of the 84 crypto assets seized from wallets believed to be controlled by Hamas aka terror-related activity.
That said, investors need to note that Dogecoin addresses received DOGE worth only $40,235. The long-term impact of darknet activities is unlikely to affect Dogecoin price in a negative way.
Regardless, the technicals seem to be showing a potential run-up brewing for DOGE.
Dogecoin price to lift-off again
Dogecoin price has rallied 42% over the last three days and is currently recovering from the recent pullback. As DOGE trades at $0.069, it is present comfortably above the 8-day Exponential Moving Average (EMA), which serves as a support level.
As long as this barrier is present, Dogecoin price remains bullish and ready for a quick run-up to the 34-day EMA at $0.074. This move would constitute a 17% ascent from the current position. However, if buyers continue to bid, the chances of DOGE visiting the high-time-frame resistance barrier at $0.078 are high.
This rally would constitute a 24% ascent. Although unlikely, in some cases, Dogecoin price could revisit the 50-day EMA at $0.082.
DOGE/USDT 4-hour chart
While things are looking up for Dogecoin price, a four-hour candlestick close below $0.057 will invalidate the bullish thesis. This development will flip the said barrier into a resistance level and further crash DOGE by 13% to the next foothold at $0.049.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
