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Dogecoin dodges bullish momentum as Senator Warren trashes crypto — What’s next?

Dogecoin, DOGE
Image by Thorsten Schulze from Pixabay

Yerevan (CoinChapter.com) — (DOGE) made an attempt to break out of the consolidation pattern on June 9. However, the meme-coin lost the bullish momentum, as US Senator Elizabeth Warren referred to the crypto market as a “lousy investment” during a Senate hearing.

The former law professor called the crypto market and Bitcoin, in particular, a “haven for illegal activity”. She stated that consumer protection laws should be put in place before crypto aspires to make its way into the mainstream economy. The Senator singled out Dogecoin as well, stating the following:

The value of Dogecoin increased by more than tenfold and then declined by 60%. That may work for speculators, and fly-by-night investors, but not for regular people looking for a regular source of value to get paid in and to use for day-to-day spending.

asserted the politician.

She also noted, that in order for cryptocurrency to offer its technological advantages in sectors like money transfers, it has to be “stable and secure”.

It’s not all bad news for Dogecoin, however, as it scored a new listing on June 8.

What’s Doge Cooking?

While the coin is notorious for being highly volatile, it has been making progress in the crypto community. Dogecoin is traded on several platforms, including Robinhood, Bittrex, and since recently Coinbase Pro. One of the most influential crypto exchange platforms listed Doge on June 3, with a promising outlook to list the coin for their app and website users as well in the near future.

Read more: Dogecoin continues to rocket in the aftermath of Coinbase Pro listing

Revolut, a fintech (financial technology) company, offering banking services, also listed Dogecoin. The bank announced the news on June 8, tweeting a Shiba Inu dog meme and claiming that there are not enough dogs in the app.

The news seem more promising for Dogecoin, combined with the technical bullish outlook.

Bullish Technicals

DOGE/USD exchange rate stood at $0.323 in the Tokyo session Friday. The token still traded in the descending channel pattern, which predicts a bullish breakout. The formation consists of two parallel lines. The upper resistance line connects the lower highs and the bottom support links the lower lows. Both trendlines capsule Doge’s attempts for a sharp trajectory change. The sessions preceding the formation were bullish, so the descending channel predicts a similar bullish break once the pattern is complete.

Dogecoin consolidating around the $0.32 support margin. Source: DOGEUSD on TradingView.com
Dogecoin consolidating around the $0.32 support margin. Source: DOGEUSD on TradingView.com

Moreover, Doge was once more consolidating around the $0.32 price margin that has provided support on several occasions since mid-April. The line proved especially significant after the infamous crypto crash on May 19.

Read more: Dogecoin barking at the moon again? Possible gains ahead

As Senator Warren put crypto on trial for high volatility and instability, Dogecoin lost its bullish spark. The token consolidated around the $0.32 significant price margin in the Toyko session Friday. However, Doge’s descending channel formation might bring gains in the upcoming sessions, if the meme-coin manages to hold on to the support line and break above it. The upcoming sessions will show if Dogecoin can log a new breakout soon.

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Lilit Chichyan

Lilit is an enthusiastic writer, skilled in 3 languages, and interested in writing about the tech world, trading, art, and science. She also has a background in psychology and marketing, which helps deliver the right message to the target audience. Lilit is creative and fast and has the experience of writing for both big marketing companies and small websites and blogs.

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