Dogecoin is trading in a narrow range. DOGE is trading at $0.2567, which is about 56% above last week’s low. Dogecoin, the sixth largest cryptocurrency in the world, has a market capitalization of over $33 billion.
The cryptocurrency market recovered on Monday, even as regulatory risks persist. On Sunday, the UK’s Financial Conduct Authority (FCA) became the fourth major regulator to issue a warning about Binance. The FCA said in a statement that Binance Markets Limited will be banned in the UK.
The scope of this ban will be limited and will not affect Binance.com’s operations. Still, the company will need to put a notice on its website and apps saying it’s not allowed to engage in any activity in the country. Other countries that have expressed concerns about Binance include the United States, Japan, and Germany.
The crisis affecting Binance may have an impact on Dogecoin and other cryptocurrencies. This may be because the company has the largest market share in crypto trading globally. Therefore, many crypto analysts consider it to be of systemic importance.
Dogecoin price is in a tight range at a time when the rest of the cryptocurrency market is recovering. Bitcoin has climbed above $34,000 in the last 24 hours. Ether, Binance Coin and Cardano gained more than 5%.
This performance seems to partially ignore the general pressure in China, as evidenced by the increasing hashrate rate from investors. Analysts expect Bitcoin mining to continue to rise as many Chinese miners move to other countries.
Figure 1. Dogecoin price analysis.
Dogecoin price prediction
The four-hour chart shows that Dogecoin price has been in a tight range recently. As a result, the coin is trading at the same level as the 25-day moving average, while the Average True Range (ATR) is falling. ATR is a commonly used indicator to measure volatility.
At the same time, the coin’s Relative Strength Index (RSI) is showing 54. Therefore, decreasing volatility could point to potential higher volatility in the near term. If this happens, the key support and resistance levels to watch could be $0.20 and $0.30, respectively.