Dogecoin has recently experienced significant volatility, with a trend emerging in the 1-hour timeframe. Support and resistance levels are weak. The medium-term trend is primarily characterized by fluctuations, characterized by sharp rises and falls. Recently, the price broke below its previous low, while the candlestick body remains within the support range. The shadows indicate that some stop-loss orders have been wiped out. The main reasons for this are as follows:
1️⃣
The release of the Stablecoin Act has redefined the identity of cryptocurrencies in the United States. This year marks the dawn of cryptocurrency. While stablecoins are the primary focus, utility coins are also attracting market attention. Large profit-taking orders by governments and groups speculating on cryptocurrency storage are further complicating market fluctuations.
2️⃣
There are divergent views on the market's bull and bear market outlooks, especially since ETH led the rally, leading to a surge in many altcoins. There is considerable speculation that Dogecoin was abandoned by Elon Musk and that the meme narrative is ineffective. Profit-taking following news-driven price increases has occurred repeatedly, demonstrating that speculators are predominant and long-term bulls are few and far between.
3️⃣
The US financial system is undergoing profound changes, profoundly impacting the global financial landscape. The Trump administration is attempting to rein in the Federal Reserve, hoping to give the US government the power to formulate and implement national monetary policy. Once the Fed's policy powers and the US government's stablecoin bill are implemented, global finance will enter a new chapter.
For the above reasons, our long-term bullish outlook for Dogecoin remains unchanged. The strategy of buying spot prices within a range of fluctuations remains unchanged, while minimizing short-term trading (15m, 30m, 1H).
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