- Dogecoin price consolidates above the $0.230 support level, anticipating a massive rally.
- Coinseed exchange gets fined $3 million for converting customers’ funds to DOGE without their consent.
- A breakdown of the $0.193 demand barrier will invalidate the bullish thesis.
Dogecoin price is coiling up above a stable support floor after a brief retest. However, DOGE is likely to retrace lower before a new uptrend kicks in.
New York AG shuts down crypto exchange
New York Attorney General Letitia James shut down Coinseed Inc., a cryptocurrency exchange. The reason behind this decision comes as the company converted the customers’ funds into Dogecoin and alleged that it violated the Martin Act.
On September 9, the court issued an order to pay $3 million in fines, shut down the exchange, and appointed a permanent receiver who will control the exchange’s websites and protect investor interests.
This action from the authorities comes after receiving many complaints in February where users’ accounts holding multiple cryptocurrencies were converted to a highly volatile meme-themed crypto DOGE.
Since its peak at $0.74 on May 8, the Dogecoin price has dropped 67% at the time of writing.
Dogecoin price prepares for a run-up
Dogecoin price rose 5% over the past 24 hours after briefly tagging the $0.230 support floor. While this retest is bullish, the pullback is far from over. There is a high chance DOGE might slice through this barrier and retest the $0.213 demand zone before kick-starting a new uptrend.
Regardless of where it bounces off, DOGE is looking at a climb to $0.308. However, this ascent is not without hurdles.
Assuming Dogecoin price starts its new leg-up from $0.230, it will encounter the $0.256 and $0.268 resistance barriers. Flipping these ceilings into platforms will open the path for a retest of $0.308.
Further increase in buying pressure will push the meme-themed cryptocurrency to $0.308, constituting a 30% ascent.
In some cases, the Dogecoin price might extend this upswing to the next barrier at $0.328.
DOGE.USDT 12-hour chart
On the other hand, if DOGE fails to bounce off the $0.230 support level, it will indicate increased selling pressure. In a highly bearish case, Dogecoin price might even retest the $0.213 demand floor. However, a breakdown of the $0.193 foothold will create a lower low and invalidate the bullish thesis.
Dogecoin Primed for a 500–1,000% Multi-Month Rally if It Hits This Level, Says Crypto Analyst Justin Bennett
Crypto market analyst Justin Bennett thinks Dogecoin (DOGE) is primed for a massive rally if it successfully recovers a key level and retests it as support.
The analyst tells his 78,000 Twitter followers that he thinks meme crypto asset Dogecoin could begin a 500-1000% multi-month surge if it can reclaim the $0.24 level.
“DOGE just needs to take out that area above $0.24.
Do that, and a multi-month rally begins, IMO (in my opinion).
Probably 500 – 1,000% of upside if it confirms.”
According to Bennett’s analysis, if DOGE can break $0.24, he expects a short-lived pump to a previous high at $0.26 before retesting $0.24 and moving higher. At the time of writing, Dogecoin is trading at $0.236, according to CoinGecko.
The crypto market strategist is also looking at Dogecoin’s daily chart, where the meme crypto asset is coiling and forming a large triangle pattern. The formation of a triangle in an uptrend suggests the bullish continuation of an asset once it takes out its diagonal resistance. According to Bennett’s chart, DOGE has printed the same pattern twice this year. In both instances, massive run-ups followed the breakout.
In a recent issue of his market analysis on the Cryptocademy newsletter, Bennett highlights three key price targets for DOGE to hit, assuming it can confirm a break above $0.245.
“If this breaks higher, targets like $0.32, $0.42, and $0.57 are well within reach.
However, keep in mind that a daily close above the upper trend line near $0.245 is required to confirm the breakout.”
Looking at DOGE against BTC (DOGE/BTC), Bennett predicts the pair will break out of a massive falling wedge formation that’s been developing since June.
“It isn’t just DOGE against the USD, either.
This falling wedge on DOGEBTC is ridiculous.
Only a matter of time before it rockets higher, IMO.”
The falling wedge formation is a technical analysis pattern that also suggests a move to the upside once the breakout is confirmed.
Elon Musk Now Worth 861 Billion DOGE, He Plans to Use It to Extend Life to Mars
Elon Musk’s net worth in Dogecoin totals 861 billion coins, he hopes that’s enough to start a permanent colony on Mars in the future
Centibillionaire Elon Musk, the wealthiest man in the world now, has a net worth of around 209 billion dollars. That is 861 billion Dogecoins.
While Elon Musk hopes this money will be enough to extend human life to Mars ultimately, some in the DOGE community dream about DOGE becoming the currency on the red planet in the future.
Elon Musk is worth 861 billion Dogecoin
Dogecoin YouTuber Matt Wallace has bothered to calculate Elon Musk’s fortune into the DOGE equivalent. With the USD net worth being $209.4 billion, its equivalent in the most popular meme cryptocurrency is approximately 861 billion DOGE, according to Wallace’s tweet (actually, at the present exchange rate, that’s $205.9 billion in DOGE).
The YouTuber tweeted that this is more than the net worth of Warren Buffett ($101.6 billion) and Bill Gates ($132.4 billion) put together.
Tesla and SpaceX CEO responded that he hopes his current fortune is enough to set up a permanent colony on the red planet. He is believed to be one of the largest Dogecoin holders in the world and Musk has recently admitted that he does hold DOGE. However, the amount of the meme coin he owns has not been disclosed.
Recently, Elon Musk sent Amazon founder Jeff Bezos a silver medal emoji on Twitter with a 2 on it, trolling Bezos regarding the size of his fortune compared to Musk’s net worth – $192.2 billion versus $205.9 billion.
Hopefully enough to extend life to Mars— Elon Musk (@elonmusk) October 16, 2021
Some Dogecoin fans in the comment thread tweeted that DOGE may well become an official currency on Mars in the future.
Musk is keen on DOGE to evolve
As reported by U.Today earlier, Tesla chief stressed the importance of DOGE fees dropping and he has been also working with the Dogecoin team on it.
Assessing the odds of Gensler, SEC targeting DOGE, SHIB next
In one of our recent commentary issues, we analyzed why sticking it to Coinbase and Ripple wasn’t really the best move on the SEC’s part. In this month’s issue, however, we’ll be assessing which class might end up being the next target of the same regulatory agency.
In April this year, when the Senate confirmed Gary Gensler as the Chairman of the Securities and Exchange Commission, most people from the U.S. crypto-community seemed to be quite relieved. It’s a well-established fact that investors from the States have been plagued by clouds of regulatory uncertainty for long periods now.
After exhibiting a keen interest in the crypto-space, referring to blockchain technology as a “catalyst for change” and teaching about the same at MIT, Gensler was expected to deliver as soon as he was handed over the baton. However, the SEC chief has predominantly remained ambivalent. Less than a month back, for instance, he ended up equating stablecoins to poker chips.
Even though his broader perception mostly seems to be anti-crypto, his crafty persona and schematic plans, in conjunction, have managed to fill in the otherwise regulatory void.
In fact, Gensler recently ruled out the probability of the U.S. implementing a crackdown on crypto, similar to that of China. Effectively, the space has been provided with a certain degree of decisiveness. At the end of the day, some certainty is better than uncertainty, right?
Too much on the chief’s plate
By and large, the SEC has been given the responsibility of overseeing the corporate sector, capital market participants, securities, and investment markets. The comparatively novel crypto-space, in retrospect, is just an infinitesimal part of the agency’s broader regulatory ambit.
Being the head of the SEC, Gensler is obviously expected to bifurcate his attention. So now, as far as Wall Street is concerned, the chief has quite ambitious plans. In fact, the SEC has been laying out one of the most solid agendas in its history.
However, the 49-odd proposals lying on the table have already invited opposition from public companies, exchanges, and brokers, among others. Even so, Gensler continues to remain undeterred. In fact, he has started laying out renewed regulatory plans for other financial sub-sectors as well.
What’s more, the Chief recently went on to assert that he is confident that the SEC could move ahead on “many issues” at once. After emphasizing that everything is at the “top” of the list, Gensler underlined that he had no priorities as such. He said,
“Don’t ask me about my three daughters and which one I spend more time with.”
No favoritism indeed
To a fair extent, the Chief has honored his word. Leaving aside the Wall Street developments, a major crypto-related stride was made of late.
People in the States had been waiting for a Bitcoin ETF to be approved for ages. Quite surprisingly, the SEC gave a green flag to Volt Equity’s Crypto-Stock ETF less than a fortnight back. Even though this was not exactly what the crypto-industry had been waiting for, the approval was well-received with pomp and excitement.
After Gensler’s recent comments on how he isn’t opposed to the idea of a Futures-based Bitcoin ETF like that of Valkyrie or BlockFi, analysts now believe that actual BTC ETFs would also get a nod sooner rather than later.
That, of course, is great news. So, what next? Would the SEC and Gensler continue dedicating more time to the crypto-space?
Reading between the lines, it can be claimed that the SEC, under Gensler, aspires to legitimize the crypto-ecosystem by lending it further credibility.
Strictly sticking to recent developments and Gensler’s assertions, one can infer that the crypto-space wil end up becoming even more streamlined in the future. The progress, however, needs to be taken with a pinch of salt because people in power, more often than not, end up changing their stance by sugarcoating it with sheer diplomacy.
Gensler’s ‘DADDY’ issues
Well, people usually take a dig at bureaucrats for their ‘bossy’ and ‘commanding’ nature. Quite recently, Senator John Kennedy questioned Gensler about why he acts like a “daddy” of the people and companies he regulates as Chairman.
Reverting back to the same, Gensler highlighted that he is merely trying to take the oath of office seriously and intends to “promote investor protection” and “facilitate capital formation.”
Classic Gensler response!
His sober explanation to the question above is an authentication of the non-impulsive approach he employs. Throughout the Q&A session, in fact, Gensler did exhibit ‘fatherly’ traits by correcting the Senator’s misconceptions and gleefully acknowledging the concords.
His ability to debunk fallacies and parallelly recognize the actual essence of the same aspect would come in handy in the final stages of crypto-regulatory drafting. He’d be THE perfect devil’s advocate.
A lot has happened in the financial space this year. One key area that is yet to be under Gensler’s focus is the equity market’s ‘meme-stock’ subset.
The unbelievably high trading numbers have put firms like Robinhood and Citadel Securities at risk. Congruently, the hype-driven surges of AMC Entertainment and GameStop have also amassed political attention. If the proposed regulations lying on the table end up being excessively intense, it’d only result in bizarre consequences for both the firms and their investors. In effect, the future prospects would be massively dented.
With meme-stocks already under the radar, it perhaps shouldn’t be a surprise if the meme-coin category from the crypto-space gets targeted next. Owing to Musk’s SNL appearance, DOGE made headlines earlier this year while SHIB’s recent price movements offer another testament to the typical ‘pump and dump’ nature of such coins.
Thus, to foster its investor protection agenda, the SEC might as well target DOGE, SHIB, and other coins in the same meme boat. The ripple effects would obviously be unfathomable – HODLers would get ‘rekt,’ a lot of capital will be drained out, and the space will end up losing a fair share of its credibility.
However, there’s a silver lining to this too.
Talks are going on that Gensler might end up delegating a part of the regulatory responsibility to other financial bodies. Decentralized cryptos have a high chance of being overlooked by the CFTC while banks could be thrust with the responsibility of stablecoins. In effect, the SEC might solely end up assuming the responsibility for other tokens that share characteristics similar to that of investment contracts.
If such a bifurcation indeed happens, where would meme-coins fit? While some argue that the value of dog-themed coins is sort of pegged to Musk’s tweets (DOGE and FLOKI, for instance), their values seldom remain stable. Ergo, the stablecoin category is ruled out for now.
Also, it’d be a joke if they’re equated to investment contracts and would be an insult to other decentralized projects if they’re brought under the same umbrella.
We’re eventually left with no option… Looks like Gary would have to set up the Meme-coin Board of America [MBA] to solely cater to the meme-coin subset!
Banter aside, if meme-coins manage to find a safe haven within the regulatory cracks, then, well and good. Nevertheless, if they fail to do so, the joke will be on them because illegitimate projects will be swept out of the space. In retrospect, the same would be a blessing to amateur investors who blindly pour capital into their so-called favorite meme projects.
Nothing less than a nightmare though
Ripple is already fighting a legal battle against the agency and Uniswap has also been targeted. Even though there hasn’t been any outright official proclamation of meme-coins being the next casualty, market participants need to remain wary.
According to a recent Bloomberg report, executives who’ve met with the SEC officials have been “privately cautioned” that the broader financial market structure rules being developed may be “extreme.” On any day, such oblique warnings coming from ‘inside’ the agency shouldn’t be taken for granted.
Now, one might argue that the executives are talking only about traditional market regulations. Oh, you wish!
Signing off by dropping the truth-bomb:
The Biden administration is only beginning to ramp up regulatory scrutiny around cryptocurrencies, according to a senior White House official.— *Walter Bloomberg (@DeItaone) October 12, 2021