Dogecoin next, says CEO as AMC introduces support for crypto payments

Will AMC's announcement help start Dogecoin's bull run?
Will AMC’s announcement help kickstart Dogecoin’s bull run? Photo by Executium on Unsplash

Key Takeaways:

  • AMC Entertainment Holdings Inc announced that it now accepts crypto payments in BTC, ETH and two other cryptos.
  • Dogecoin prices didn’t react as the meme token continues its bearish trend.

NEW DELHI (CoinChapter.com) — AMC Entertainment Holdings, the world’s largest movie exhibition company, today announced that it now accepts Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC). The company also shared that the meme crypto, Dogecoin, is the next crypto that it will include in its crypto payments roster.

Adam Aron, AMC’s CEO, shared the news via his Twitter handle. He also announced support for Apple Pay, Google Pay, and PayPal.

Earlier, during the company’s Q3 earnings call on Monday, the AMC CEO had promised support for crypto-based online payments on the company’s website and app. Mr. Aron further speculated that Dogecoin payments would become available in the first quarter of 2022.

Interestingly, the AMC top executive also said the company is considering taking Doge’s competitor, Shiba Inu, as a currency.

Despite the positive news, Dogecoin continued its bearish form. The memecoin fell 7.19%, going from Nov 12’s high of $0.271 to the day’s low of $0.2515 before recovering. Dogecoin’s volatility is one of the reasons why crypto veterans tend to stay away from meme tokens.

AMC’s Next Target- DOGE

Before deciding to start accepting Dogecoins, AMC CEO Adam Aron took a Twitter poll, asking followers if the company should start accepting Dogecoins. The result was a resounding Yes, with more than 68% of users voting for the option.

AMC is the largest movie exhibition company in the U.S., Europe, and the world. The firm owns or operates approximately 950 theaters and 10,500 screens globally. As such, Dogecoin’s adoption as a payment method would act as a big boost for the meme token.

Dogecoin started as a joke on cryptocurrencies, taking its name from the popular ‘doge’ meme, which features a Shiba Inu dog. After Dogecoin, several other similar memecoins took birth, prominent being Shiba Inu, Dogelon Mars, Hoge Finance, etc.

Also Read: Dogecoin price rallies 25% alongside rival Shiba Inu amid meme coin boom

AMC CEO’s tweet regarding the inclusion of DOGE received 19.2k times. The list included Elon Musk as well, who recently admitted to owning some Dogecoins. The meme token has gained quite a few famous names in its following, including Dallas Mavericks owner Mark Cuban, who DOGE is the ‘strongest cryptocurrency for payments.’

Mr. Aron said his team is coding to include Dogecoin as a payment option by early 2022. He further added that AMC would not hold any crypto on its balance sheet, thereby protecting it from the fluctuations of the volatile crypto market.

In a recent tweet, Mr. Aron also shared that he is considering including the Shiba Inu token (SHIB) as a payment option. He shared that the decision came after receiving a ‘flood‘ of messages to include Shiba Inu.

That’s [Shiba Inu] the next one on our cryptocurrency hip parade. I might add that we believe we have figured out ways where we do not have to hold cryptocurrency on our balance sheet. So we’re not taking increased balance sheet risk with all this potential acceptance of cryptocurrency.

Adam Aron, AMC CEO, in the Q3 earnings call.

However, Dogecoin has failed to react to the announcement, with its prices still in a slump.

Dogecoin Price Charts

Dogecoin prices have been moving between $0.226 to $0.288 price channel since Oct 4. Although the meme token had an explosive Oct, gaining 37.01% and reaching a monthly high of $0.355, it is down 8.27% in Nov. DOGE began the current week on a high, gaining 5.69% on Monday, but prices fell the following day.

Also Read: Dogecoin looks poised to reach record high on persistent DOGE bull pennant breakout

DOGE is currently bearish in the long-term, trading below its 200-day moving average trendline. The meme token currently has immediate resistance at $0.266. If bulls react to the AMC news, prices could breach immediate resistance before capping at $0.277.

Sustained buying pressure could see prices reach $0.288, where the 200-day EMA would likely end the meme token’s bull run in the absence of other bullish fundamentals.

DOGE prices are in a slump despite the AMC adoption news.
DOGE prices are in a slump despite the AMC adoption news. Source: DOGEUSD on Tradingview.com

On the other hand, further downside movement would see DOGE seeking support at $0.245, near its 50-day M.A. trendline. If prices fall below it, the support at $0.234 will come into play. If traders panic-sell to recover losses, Dogecoin could reach $0.226 before recovering.

Meanwhile, MACD for DOGE continues to be bearish. Bars on the MACD histogram are negative, indicating that the MACD line (difference between 12-day and 26-day EMA) is below the MACD signal line (9-day EMA of MACD). Furthermore, the bars are increasing in magnitude, indicating the bearish momentum to be strong.

MACD continues to be bearish for Dogecoin Prices.
MACD continues to be bearish for Dogecoin Prices. Source: DOGEUSD on Tradingview.com

As such, it seems Dogecoin is likely to continue its bear run for some time. In addition, the relative strength index for DOGE is neutral, with a value of 47.92. The RSI trendline is moving downwards towards the oversold levels. If RSI reaches below 30, it might trigger a trend reversal for Dogecoin.

At the time of writing, Dogecoin prices were $0.2558, down 2.04% on the day.

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