The price action for Dogecoin on Thursday, 17, saw bulls severely affected as the downward trend for the meme cryptocurrency continues.
Two negative events have undoubtedly impacted the cryptocurrency market, especially the value of DOGE. The news coming out of Russia indicates no possible end to the military offensive against Ukraine.
The second is the news that the Indian Central Bank has vehemently rejected cryptocurrency adoption in the populous Asian nation. According to the apex bank, digital currency is a destabilizing tool capable of weakening the fiat currency system, the overall monetary system, and the government’s capacity to steer the country’s economy.
It signals another setback for accepting virtual currencies in one of the biggest economies in Asia, coupled with the ongoing war in Eastern Europe, which is a challenge to overcome.
Dogecoin’s Temporary Price Recovery
The price performance of the popular meme token is not in an influential position that will be enough to instil confidence in investors and traders alike. The partially related events mentioned above have seen the action of the bulls kept aside as the target of $0.1357 is deferred to next week.
The price of the DOGE declined further from its initial trading price and has now spiraled downward, allowing the bulls to evaluate the situation for further action. An unforeseen risk was responsible for the headwinds that took over the tailwinds, which occurred the day before the price slump.
The price action for Dogecoin is expected to drop further again in a move that is akin to what happened last week.
Another interesting angle to the downward slope of the top meme coin is that negative headlines impact the performance of the price during trading sessions. From the value of $0.1197, which depicts the green ascending slope, the bulls struggle to break out of the zone, making the price action collapse.
Once the price collapses, the entry point is left dangling, and it is vulnerable to dropping once a slight downward move takes effect. Due to this, the value of $0.1137 down to $0.1100 is set for any possible downswing.
The risk of break-even is not ruled out in this situation, but it is a possibility should more tail risks emerge.
A Possible Way Out
As soon as another trading session comes into play, investors may choose to overlook the short-term challenges and move on, or they could decide to dump their funds at a discount for willing buyers.
Should investors do this, another trend reversal has awakened, leading to a price of about $0.1197 and above. A move towards this could target the price at $0.1242 amid expectations of further recovery.
In all, the ability of Dogecoin to pull itself out of the present market situation is dependent on other factors beyond its control.
Investors and traders can hope for the best outcome when all market factors appear favorable to the meme token, but only time can tell.