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US Authorities Must Not Regulate Digital Currencies –  Elon Musk

Self-acclaimed Doge-father and electric car billionaire, Elon Musk, has opined that America’s authorities must not regulate the digital asset industry. Musk spoke during an interview at the recent California code conference when he said the government shouldn’t do anything about the digital asset industry. However, he agreed that the authorities have the right to control the growth of this sector, but they shouldn’t use that power to destroy it.

Musk On Why China Banned Crypto Permanently 

Musk also opined that the acute shortage of electricity supply in some china provinces may have prompted the authorities to issue an outright ban on all crypto-related transactions. He said, “while I may not be 100% correct, crypto mining might be responsible for the higher than usual electricity consumption in many provinces.” Musk’s comments come at a time American authorities are considering the regulation of the digital currency space.

Sec chief has reiterated the need for the financial regulator to protect crypto investors from losing their cash in the highly volatile crypto industry. Hence, he proposed that all digital currencies on all exchanges must be considered securities.

Musk has always been a crypto advocate, especially for his beloved cryptocurrencies – Shiba Inu, Floki Shiba, and Dogecoin. His social activities always caused spike or plunge in the price of these assets, including the BTC price and DOGE price. The massive surge in DOGE price, especially in the first half of this year, could be attributed solely to the social activities of Elon Musk.

DOGE May Trigger A Bear Trap

DOGE price surged over the 24-hour tenkan-sen (also called the conversion line) following a 7% jump. However, this was expected given that it’s been more than seven days since this close reached the tenkan-sen. An explicit close over this conversion line could push DOGE to trade at $0.24 in the shortest possible time.

If the buying pressure is sustained, DOGE will surge past the $0.213 range as the technical indicators prove this is a possibility. Hence, it might reach $0.232 – the price that coincides with the 0.382 fib retracement levels. Also, the fast and slow MAS of the composite index indicates a bullish cross. However, the RSI is now in the bear region.

Like the RSI, the directional movement index also indicates bearishness. Conversely, a close over the conversion line would lead to a bearish divergence and a strong selling pressure. Buyers can only hope that the bullishness seen on the mas will be enough to sustain a strong rally for the DOGE and even breakout out of some near resistance price levels.

DOGE/USDT 1-day chart. Source: CryptoWatch

Even though the intraday sessions indicate a bullish momentum, traders must keep in mind that there is usually high volatility in the market during the weekends. Hence, DOGE can still break the $0.195 lows and may even reach the $0.122 levels over this weekend if the market doesn’t swing in its favor. The best way DOGE can suppress the bears for a long while is to break out of the $0.24 levels and move towards the $0.265 levels. 

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