Dogecoin Faces Turbulence as Robinhood Bleeds 164 Million DOGE Amid SEC Wells Notice

Dogecoin (DOGE) experienced a turbulent week following news of the US Securities and Exchange Commission (SEC) issuing a Wells Notice to Robinhood, a prominent crypto exchange. The notice alleged violations of securities laws by Robinhood, prompting a mass exodus of funds from the platform, including a significant withdrawal of 164 million DOGE, valued at approximately $25 million at the time.

DOGE Price Dips 5.8% Amidst News, But Analysts Urge Caution in Attributing Decline Solely to Robinhood Outflow

The news triggered a 5.8% decline in DOGE's price within 24 hours, raising concerns among investors. However, analysts caution against attributing the entire price dip solely to the outflow from Robinhood, as cryptocurrency transfers to personal wallets often signal long-term holding intentions.

Correlation with Bitcoin and Broader Crypto Market Pullback Impact Sentiment

DOGE's price is also influenced by its tight correlation with Bitcoin (BTC), particularly amidst the recent pullback in the broader crypto market. Both currencies operate on the Proof of Work (PoW) consensus mechanism, which may affect sentiment.

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

DOGE Struggles to Reach $0.20 Target, Faces Key Support Test at $0.15 Amidst Analysts' Caution and Short-Term Pessimism

DOGE faced a hurdle in reaching its $0.20 price target, dipping below the crucial $0.15 support level. Analysts suggest a potential support zone between $0.143 and $0.146, emphasizing the importance of monitoring further price corrections.

Despite short-term pessimism, DOGE shows signs of resilience. Buy orders outweigh sell orders, the Relative Strength Index (RSI) remains neutral, and weekly price increases indicate underlying strength.

The outcome of Robinhood's legal battle with the SEC and DOGE's ability to recover lost ground will shape its short-term trajectory. However, long-term forecasts for DOGE remain cautiously optimistic, with potential for recovery and sustained growth.