Dogecoin price has taken down resistance at $0.062, turning it into an immediate support and a springboard for potential gains to $0.1. Bulls seem intentional with the push for a recovery, especially with DOGE now sitting above two key moving averages; the 50-day Exponential Moving Average (red) at $0.06229 and the 100-day EMA (blue) at $0.06418.
Will Dogecoin Price Sustain The Uptrend?
Dogecoin price has been flipping bullish in September, although gradually. The ninth-largest crypto with $8.8 billion in market capitalization has since tested support at $0.06 strengthened the uptrend, weakened resistance at $0.062, and now is fighting the seller congestion at $0.063.
If traders gain interest and seek exposure to the long positions in DOGE, the uptrend will be unstoppable. A buy signal from the Moving Average Convergence Divergence (MACD) reveals that recovery may continue, especially if bulls hold onto the range support at $0.062.
Traders would also be looking out for a daily close above $0.063, the immediate resistance, to gauge the viability of the uptrend. A sustained breakout would suggest that Dogecoin price has the momentum to at least climb to the 200-day EMA (purple) and retest the grey band at $0.065. Further movement above the range limit could trigger a buying spree among investors targeting highs beyond $0.1.
How Dogecoin Price Will Fair After The FOMC Meeting
The United States Federal Open Market Committee (FOMC) is meeting starting Tuesday to Wednesday to deliberate the next decision on monetary policy. Another hike in interest rates is possible as the Fed is expected to take a strong stance against inflation, considering the high cost of crude oil that continues to drive the prices of commodities sky-high.
However, a strict monetary policy could negatively impact the crypto market, which has been performing well since the release of the Consumer Price Index (CPI) data last week.
A sell-off across the market may not leave DOGE unaffected, hence, a retracement is projected below support at $0.062. Both the 50-day EMA and the 100-day EMA are in line to help shield investors from the potential sell-off but if push comes to shove, the downtrend might stretch to the primary support at $0.06.
Investors mulling over which token to buy between DOGE and SHIB may want to consider Dogecoin. According to the comparison chart below, Dogecoin price has for the last year outperformed Shiba Inu. In other words, the same investment in DOGE and SHIB would yield a higher return on investment in Dogecoin.
New York Regulator Refuses To Greenlight DOGE
The New York Department of Financial Services (DFS) axed Dogecoin and XRP from its green list of tokens as it moves to tighten its grip on digital assets. With the VOLT initiative, the DFS hopes to enhance oversight of the crypto market.
The updated coin-listing guidelines is meant for the evaluation of risks associated with crypto tokens while introducing new guidelines for businesses that serve retail customers. Only eight digital assets made it to the new DFS green list, with XRP and Dogecoin excluded.