The Shiba Inu’s reign as king of memecoins may be facing a ruff patch. Dogecoin (DOGE) prices dipped this week after news broke of the US Securities and Exchange Commission (SEC) issuing a Wells Notice to Robinhood, a popular crypto exchange.

The notice, a precursor to potential enforcement action, alleges Robinhood violated multiple securities laws. This sent shockwaves through the crypto community, with many investors, particularly those holding large amounts of DOGE (often nicknamed “whales”), pulling their funds out of Robinhood.

The most significant outflow involved a whopping 164 million DOGE, worth roughly $25 million at the time, being transferred out of the exchange. This mass withdrawal by a whale investor likely contributed to the market jitters surrounding DOGE.

🚀🐕 Another 164M $DOGE, worth $25M, have been transferred out of Robinhood.

These transactions occurred after the platform received a Wells notice from the SEC. #DOGE #Robinhood #CryptoNews

Source: MartyParty pic.twitter.com/oKxW1S8pTD

— Bitcoinsensus (@Bitcoinsensus) May 8, 2024

DOGE Price Wobbles: Short-Term Blues Or Long-Term Woof?

The price of DOGE tumbled 5.8% in the 24 hours following the Robinhood news. However, analysts caution against a knee-jerk reaction. While the legal troubles undoubtedly cast a shadow on Robinhood, the DOGE outflow, including the 164 million transfer, might not be the sole culprit behind the price dip.

Transferring cryptocurrency from an exchange to a personal wallet is often seen as a bullish move, indicating an intention to hold for the long term.

Dogecoin And Bitcoin: A Tale Of Two Blockchains

Another factor influencing DOGE’s price is its tight correlation with Bitcoin (BTC). Both currencies operate on the Proof of Work (PoW) consensus mechanism, which some see as outdated compared to newer, energy-efficient models.

The recent pullback in the broader crypto market, especially in Bitcoin, likely played a role in dragging DOGE down as well.

DOGE market cap currently at $20.7 billion. Chart: TradingView.com

Rocky Road To $0.20? DOGE Faces Support Hurdle

DOGE enthusiasts were eyeing a price target of $0.20, but the recent drop presents a roadblock. The memecoin dipped below the crucial $0.15 support level, raising concerns about a further decline.

Analysts point to a potential support zone between $0.143 and $0.146, but a fall below that could trigger a more significant price correction.

Bullish Signs Amidst The Dip

Despite the short-term pessimism, there are glimmers of hope for DOGE. The buy orders for DOGE currently outweigh sell orders by a significant margin, suggesting continued investor interest.

Related Reading: Forget The Price Dip: Ethereum Network Activity Hints At Imminent Takeoff

Additionally, the memecoin’s Relative Strength Index (RSI) sits at a neutral 47, indicating there’s room for new buyers to enter the market. Furthermore, DOGE managed to maintain a weekly price increase despite the daily drop, hinting at underlying resilience.

Doge Day Delayed, But Not Doomed

The coming weeks will be crucial for Dogecoin. The outcome of Robinhood’s legal battle with the SEC and DOGE’s ability to regain lost ground will determine its short-term trajectory. However, long-term forecasts for the memecoin remain cautiously optimistic.

Featured image from Yahoo Finance, chart from TradingView

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A closely followed crypto trader believes that Solana (SOL) just witnessed its last major correction for this market cycle.

Pseudonymous analyst Inmortal tells his 213,300 followers on the social media platform X that SOL bulls successfully defended support at around $120.

The trader shares a chart suggesting that the blue-chip altcoin is now poised to rally to a fresh 2024 high at $320.

“Last dip ever.

SOL.” 

At time of writing, SOL is worth $153.45, suggesting an upside potential of nearly 110% if the altcoin hits the analyst’s target.

Inmortal also predicts that a trio of memecoins will rally alongside Solana. The trader is taking a close watch on Floki (FLOKI), which he says looks bullish after retesting the 200 moving average (MA) on the eight-hour chart and reclaiming support at $0.00015.

Inmortal believes that FLOKI will dip to around $0.00017 before surging to $0.00025 later this month.

“IF SOL goes up, THEN FLOKI, DOGE, PEPE go up too.

Especially interested in FLOKI

> Deviation + Retest + 200 MA
> A bit lagged.” 

At time of writing, FLOKI is trading at $0.000179.

Another coin on the trader’s radar is Seedify.Fund (SFUND), an incubator and launchpad specializing in blockchain gaming. According to the analyst, SFUND is currently in the process of cementing the $2.60 level as support.

“Retesting a 578 days accumulation, for the second time.

Definitely, you don’t see this every day.

SFUND.” 

Looking at the trader’s chart, he seems to predict that SFUND will rally to $6 in the coming months. At time of writing, SFUND is trading at $2.65.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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A widely followed crypto strategist says one Dogecoin (DOGE) challenger is way ahead of its fellow altcoins.

Pseudonymous analyst Cred tells his 624,100 followers on the social media platform X that he’s bullish on the frog-themed memecoin Pepe (PEPE).

According to the crypto strategist, PEPE is leading the altcoin pack in terms of market structure as the memecoin moves close to its all-time high even after last month’s marketwide correction.

“PEPE: one of the strongest alts, ahead of several of the others by virtue of breaking its range high (vs. Bonk and Doge, which are still technically testing their respective resistances).” 

At time of writing, PEPE is $0.00000865, less than 20% away from its all-time high of $0.0000106.

Looking at Dogecoin, Cred says that DOGE will likely lose steam if it retests its immediate support at $0.147.

“One of those instances where reaching the best support would make the chart look quite ugly, so options are to hope for low time frame/shallow pullbacks, or breakout chase.” 

At time of writing, DOGE is worth $0.162, very close to the analyst’s next breakout level.

As for fellow memecoin Bonk (BONK), Cred says the altcoin looks bullish as long as it trades above its range midpoint at $0.000025.

“Strong off the lows, at local range high. Shallow pullback and/or breakout punts preferable. Retracing the reclaim back to the range low would be a tough look.”

At time of writing, BONK is trading at $0.0000262.

The last coin on the trader’s list is dogwifhat (WIF). According to the analyst, WIF is in the midst of a new uptrend with invalidation below $3.

“Assuming one-day close doesn’t get stuffed, this move would signify a daily time frame higher high + move back into the former range.

Same area would act as line in the sand for bias i.e. sub $3.” 

At time of writing, WIF is worth $3.37.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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