Dogecoin (DOGE) continues to exhibit signs of mixed trading, reclaiming the key $0.20 level for now but seems unable to rise much further as investors remain cautious about the memecoin in the wake of China’s latest crackdown on cryptocurrencies. At the time of writing, DOGE/USD is trading around $0.20.
The sentiment in the crypto markets received quite the blow late last week after China’s central bank PBOC came down hard against all forms of crypto transactions, deeming them illegal and forcing major businesses to stop servicing China-based customers. While this affected cryptocurrencies across the board, including the leading coins, memecoins like Dogecoin were severely affected by the uncertainties, driving much volatility in the coin. After losing more than 1.5% of its value on Tuesday, DOGE clawed back some of its strength in the previous session and appears to be starting Thursday on a cautiously upbeat note for now.
One of the key drivers of popularity as far as memecoins like DOGE are concerned is social engagement, which has been receding over the past few weeks. Dogecoin’s social volume on Twitter especially has been rather weak through the month of September, indicating declining interest among its online community and users in the cryptocurrency. With users losing interest in promoting or discussing the crypto, investor interest in it also seems to be weakening and dragging its price lower as a result.
On the fundamentals front, the most popular memecoin could find some support over news of a partnership between crypto payment processor BitPay and Verifone, which could let users pay in cryptocurrencies like Dogecoin for US merchants. This development could drive mainstream adoption of cryptocurrencies as a payment option across businesses in the US, driving up the demand for cryptos. Verifone’s CEO Mike Pulli has already confirmed strong interest among merchants for enabling this facility.
While the price action in Dogecoin remains weak at the moment, analysis by CoinQuora offers some hope for an upcoming rally in the coin into October. According to analysts, DOGE’s price is close to being oversold and could go lower towards and even fall below the support at $0.04 after which a trend reversal could see the price rally, possibly all the way to the key $1 mark.
Key Levels to Watch
Technical analysis of the 4-hour chart of DOGE/USD reveals a strong bearish bias among most of the moving averages as well as the momentum indicator. Although, the MACD points to some buying interest too.
Dogecoin’s price is sitting just under the pivot point at $0.21 but manages to hold above the immediate support at $0.18. Further selling pressure can see a test of the support but in case more buyers enter the market now, we can see DOGE rise past the pivot point towards the first resistance at $0.22.