Here’s why analysts believe bears are taking control of Dogecoin
- Dogecoin price made several unsuccessful attempts to break out of the downtrend that started in May 2021.
- Binance clarified that the Dogecoin tokens locked by users in the staking program remain with the exchange.
- Analysts argue that bears are taking control of Dogecoin as the meme coin struggles to breach its multi-year trend line.
Dogecoin price is struggling to break out of its downtrend and begin a recovery. Several influencers in the Dogecoin community recently criticized Binance’s staking program, and the exchange offered an explanation.
Dogecoin price is in a downtrend that started in May 2021
The largest meme coin in the crypto ecosystem is struggling to break out of a downtrend that started in May 2021. Dogecoin’s dominance is threatened by failed attempts by the crypto asset to invalidate the downtrend, to no avail.
Last week Dogecoin started its recovery, bulls gained control of the meme coin. Analysts expected DOGE to break out of its long-term resistance, however the bullish momentum was short-lived.
While Dogecoin price is nearly 6% higher than it was a week ago, the meme coin continues to disappoint holders.
Binance offered clarification on Dogecoin staking
Binance’s new locked staking program for crypto assets including Dogecoin was heavily criticized on crypto Twitter. Binance addressed the concerns of users and shed light on the staking program.
A Binance spokesperson explained that,
There is no on-chain staking of LTC and DOGE for network validation since these are non-proof-of-stake tokens. The user funds remain with Binance, and we have very strict risk management controls to ensure their security.
Analysts note Dogecoin is struggling to break out of multi-year downtrend
FXStreet analysts evaluated the Dogecoin price trend and noted that the meme coin is closer to breaking out of its multi-year trendline. Dogecoin has recouped losses over the past week and the asset is now ready to break out of the downtrend. For price targets and more information on the trend line, check the video below: