Bit Origin’s DOGE purchase for its crypto treasury could improve sentiment and boost the altcoin above the $0.29 resistance.
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Bit Origin’s DOGE purchases for its crypto treasury could limit the downside and open the doors for a rally above $0.29.
China-based pork processing company and Bitcoin miner Bit Origin said on Monday that it had completed the acquisition of 40.5 million Dogecoin (DOGE) for its crypto treasury. Earlier, the firm said on July 17 that it aims to become the largest publicly traded DOGE holder. For that, the firm has entered into agreements with investors to raise $500 million via a combination of share sales and debt offerings.
Could DOGE’s treasury adoption increase demand, boosting prices higher? Let’s analyze the charts to find out.
Dogecoin price prediction
DOGE has been range-bound between $0.14 and $0.29 for several days, indicating buying near the support and selling close to the resistance.
The price turned down from $0.29 on Monday and reached near the 20-day simple moving average ($0.21) on Thursday. Buyers are trying to start a rebound, which could face selling at $0.26 and again at $0.29. If buyers bulldoze their way through, the DOGE/USDT pair could signal the start of a new up move. The pair may rally toward the pattern target of $0.44.
Instead, if the price turns down and breaks below the 20-day SMA, it signals that the bulls have given up. That may keep the pair inside the range for some more time.
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The 20-SMA has started to turn down, and the RSI is in the negative territory, indicating that the bears have the upper hand in the near term. Relief rallies to the 20-SMA are likely to be sold into. If the price turns down from the 20-SMA, the pair risks falling to $0.21.
The first sign of strength will be a close above the 20-SMA. That suggests the selling pressure is reducing. The pair may rally to $0.27 and later to $0.29, where the bears are likely to mount a strong defense.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
