The rule of the Shiba Inu over memecoins might be experiencing a rough patch. Prices of Dogecoin (DOGE) dropped this week following word of the US Securities and Exchange Commission (SEC) sending a Wells Notice to well-known cryptocurrency exchange Robinhood.
Alleging violations of several securities laws, the notification, a forerunner of possible enforcement action, claims Robinhood breached The crypto industry was rocked by this as many investors—especially those with significant DOGE (commonly known as “whales)—pulled their money out of Robin Hood.
🚀🐕 Another 164M , worth $25M, have been transferred out of Robinhood. These transactions occurred after the platform received a Wells notice from the SEC. Source: MartyParty — Bitcoinsensus (@Bitcoinsensus)
DOGE Price Wobbles: Short-Term Blues Or Long-Term Woof?
in the 24 hours following the Robinhood news. Analyzes warn against a hasty response, nevertheless. Although the legal issues surely cloud Robinhood, the DOGE outflow—including the 164 million transfer—may not be the only factor behind the price drop.
Dogecoin And Bitcoin: A Tale Of Two Blockchains
DOGE’s price also varies in direct proportion to Bitcoin (BTC). Operating on the Proof of Work (PoW) consensus method, both currencies some view as antiquated in comparison to more modern, energy-efficient versions.
DOGE market cap currently at $20.7 billion. Chart:
Rocky Road To $0.20? DOGE Faces Support Hurdle
Although DOGE aficionados were aiming for $0.20, the latest decline creates a challenge. The memecoin fell below the critical $0.15 support level, which sparked worries about a further drop still.
Bullish Signs Amidst The Dip
Though there is temporary gloom, DOGE has some hope. DOGE’s buy orders now clearly exceed sell orders by a sizable margin, implying ongoing investor interest.
Related Reading: Forget The Price Dip: Ethereum Network Activity Hints At Imminent Takeoff
Furthermore, the memecoin’s Relative Strength Index (RSI) comes out as a neutral 47, suggesting that fresh purchasers could find place on the market. Moreover, DOGE kept a weekly price gain in spite of daily decline, suggesting underlying resilience.
Doge Day Delayed, But Not Doomed
For Dogecoin, the next weeks will be absolutely vital. Robinhood’s legal struggle with the SEC and DOGE’s capacity to reclaim lost territory will decide its short-term course. Long-term memecoin projections, however, remain rather positive.Featured image from Yahoo Finance, chart from TradingView