Did the DOGE gather enough strength to sustain the ascent? The weekend started with the continued bullishness of the cryptocurrency market as most of the coins were in the green zone, with the exception of Cardano (ADA), whose rate fell by 1.32%. Crypto analyst and trader and host of The Wolf Of All Streets podcast, Scott Melker, covers a threat he believes is important to the future of Bitcoin. Melker also touches on the top smart contract platform Ethereum (ETH) and the chance to change Bitcoin’s market value. Cryptocoin. com we are looking at the details.
DOGE rate increased by 2.18% in the last 24 hours. On the Saadollarsik chart, DOGE is in a sideways trend between the most liquidity zone at $0.32 and resistance at $0.3360. Trag volume is falling, which means that the coin has not yet accumulated enough energy for a price padlock.
In this case, a sharp movement should not be expected over the weekend. On the broader timeframe, buyers are showing strength after the dip to $0.28. If they can hold steady above $0.33, they are likely to see continued growth next week to the $0.36 resistance level. On the weekly chart, the bulls have absorbed the decline and are about to close the candle near the resistance at $0.36. If such a scenario occurs, a rise to the next critical level around $0.44 can be expected next week. The increased trading volume confirms a possible price increase. DOGE is trading at $0.3262 at the time of writing.
The threat against Bitcoin, according to analyst Scott Melker
On the other hand, crypto analyst and host of The Wolf Of All Streets podcast Scott Melker draws attention to a threat that he believes is important to the future of Bitcoin. In an interview, Melker discusses the series of regulatory threats that Bitcoin (BTC) may face in the near future, as the king coin potentially becomes too large to escape the government’s reach. Melker says that Bitcoin will inevitably be subject to further regulation and scrutiny in terms of the type of regulation the asset will face. Analyst Melker says:
I think editing is necessary; And whether you think it’s necessary or not, we all know it’s inevitable – so I’d say the threat is some sort of regulation. Heavy regulation by regulators who don’t understand the asset could be very bad for BTC in the short term.
The analyst likens the situation to the Chinese mining phenomenon, where many BTC mining rigs go out of the country. Melker says:
The Chinese mining breakout could be bearish, but this is something that is bearish only in the very short term. If you believe in the decentralization of the network and are worried about the influence of China, this should be seen as a long-term bullish… It depends on what lens and time frame you look at any of these.
Melker says that even if Bitcoin faces harsh government regulations around the world, the network will not fail. Melker:
I would say that extremely harsh laws from multiple countries can make this very, very difficult. But to be clear, Bitcoin cannot be stopped. It cannot be banned.
Melker also cites the chance of surpassing the market cap of top smart contract platform Ethereum (ETH) and Bitcoin. While the analyst does not believe that Ethereum will surpass Bitcoin in valuation, he says that the ETH network has received intense institutional attention and de facto use. Continuing, the analyst says:
Ethereum had higher trading volume than Bitcoin in the second quarter… I think both assets will be bullish… I don’t think Ethereum will surpass Bitcoin in market cap anytime soon, but institutional interest is growing tremendously… trading volumes, real usage network is huge .
According to CoinGecko, at the time of writing, Ethereum has a market cap of $384.6 billion and Bitcoin has a market cap of almost a trillion dollars.