Dogecoin price is rising above a stable support base after a brief retest. However, DOGE is likely to move down before starting a new uptrend.
New York Attorney General shuts down crypto exchange
New York Attorney General Letitia James has shut down cryptocurrency exchange Coinseed Inc. The reasoning behind this decision is that the company is converting customers’ funds into Dogecoin, violating the Martin Law.
On September 9, the court ordered a $3 million fine to be paid, shut down the exchange, and appointed a permanent official to control the exchange’s websites and protect investor interests. The action comes after multiple complaints were received in February that accounts of users with multiple cryptocurrencies had been converted to a highly volatile prank-based crypto DOGE.
Since its peak at $0.74 on May 8, the Dogecoin price has fallen massively.
Is Dogecoin price poised to rise?
Dogecoin price is up 5% in the past 24 hours after surpassing the $0.230 support base. While this retest is bullish, the pullback isn’t over. There is a high probability that DOGE will retest the $0.213 demand zone before starting a new uptrend.
Besides, DOGE seems to be aiming for a climb to $0.308 regardless of where it bounces. However, this rise is not without obstacles. Assuming that Dogecoin price starts its new rise at $0.230, it will face the $0.256 and $0.268 resistance barriers. Turning these resistances to support will open the way for a retest of $0.308.
Any further increase in buying pressure could push the prank cryptocurrency towards $0.308, which represents a 30% gain. Moreover, Dogecoin price could extend this rise to the next hurdle at $0.328.
On the other hand, if DOGE fails to bounce off the $0.230 support level, it will point to upward selling pressure. In this case, Dogecoin price could retest the $0.213 support base. However, a break of the $0.193 low will create a lower low and invalidate the bullish argument.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.