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.
The most significant outflow involved a whopping 164 million DOGE, worth roughly $25 million at the time, being transferred out of the exchange. This mass withdrawal by a whale investor likely contributed to the market jitters surrounding DOGE.
🚀🐕 Another 164M $DOGE, worth $25M, have been transferred out of Robinhood.
These transactions occurred after the platform received a Wells notice from the SEC. #DOGE #Robinhood #CryptoNews
Source: MartyParty pic.twitter.com/oKxW1S8pTD
— Bitcoinsensus (@Bitcoinsensus) May 8, 2024
DOGE Price Wobbles: Short-Term Blues Or Long-Term Woof?
DOGE dropped 5.8% 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.
Transferring cryptocurrency from an exchange to a personal wallet is often seen as a bullish move, indicating an intention to hold for the long term.
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.
The recent pullback in the broader crypto market, especially in Bitcoin, likely played a role in dragging DOGE down as well.
DOGE market cap currently at $20.7 billion. Chart: TradingView.com
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.
Analysts point to a potential support zone between $0.143 and $0.146, but a fall below that could trigger a more significant price correction.
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