• Dogecoin Foundation announced a fund of $5 million DOGE to the ecosystem’s development fund.
• DOGE briefly increased in light of the development but has since been unable to sustain resistance.
• According to the Moving Average Convergence Divergence (MACD), momentum is bearish and the short-term movement for DOGE might end in a decrease.
The Dogecoin ecosystem recently received a surprise end-of-the-year gift from the Dogecoin [DOGE] Foundation as it announced a fund of five million DOGE to the ecosystem’s development fund. The blog post stated that the fund will be used to reward developers of Dogecoin Core for their contributions, no matter how big or small. In light of the news, the price of DOGE briefly increased, however, it seems that the coin is unable to sustain the resistance as the price has since decreased.
The daily chart of DOGE reveals that the resistance further fell from $0.11 to $0.07 on 21 December. Additionally, the Moving Average Convergence Divergence (MACD) revealed that DOGE might not be able to sustain the recent price increase. The MACD signal showed that momentum was bearish as the 12-26 Exponential Moving Average (EMA) difference was beneath the histogram. Furthermore, the selling control (orange) overtook the buying power (blue). Therefore, the short-term movement for DOGE could end in a decrease below the support zone, which is currently at $0.067.
The contribution from the Dogecoin Foundation is certainly a generous one and could be beneficial for the project in the long run. However, it remains to be seen whether the recent increase in DOGE will be sustained or if it will decrease further in the near future. It is important to note that these are merely predictions and that the actual results may differ.