The Dogecoin price is eerily calm as investors wait for the latest US inflation data set for Thursday. DOGE is trading at $0.3350, which is still 55% below the year-to-date high of $0.7512. It has a market cap of more than $43 billion, making it bigger than many American companies like Stitch Fix, United Airlines, and Occidental.
What happened: Dogecoin is in a consolidation mode as calls for cryptocurrency regulations grow ahead of US inflation data. In a statement yesterday, Elizabeth Warren, the vocal Senate from Massachussets, said that regulators needed to approach cryptocurrencies headon. These calls are likely to be amplified after it emerged that JBL, the biggest meat processor in the US paid $11 million to hackers. She said:
“Cryptocurrency has created opportunities to scam investors, assist criminals, and worsen the climate crisis. The threats posted by crypto show that Congress and federal regulators can’t continue to hide out, hoping that crypto will go away. It won’t. It’s time to confront these issues head-on.”
Meanwhile, Dogecoin and other cryptocurrencies are waiting for another catalyst. This could happen later today when the US releases its inflation numbers. The data will be watched closely since it could influence what the Fed will do later this year. If the inflationary pressures continue, the bank could be forced to start tightening earlier than expected. This, in turn, will lead to a rotation from risky assets to value.
The daily chart shows that the DOGE price has been in a consolidation in the past few days. Along the way, the coin has formed what looks like a symmetrical triangle. Notably, this triangle is nearing its confluence zone, meaning that the coin could soon break out.
A symmetrical triangle is usually hard to predict but since this formed after a major bullish run, there is a possibility that it will break out higher. If this happens, Dogecoin will likely break out higher and retests the next key resistance at $0.7427. The stop for such a trade will be a break below the psychological stop at $0.2500.
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