Dogecoin Is Ready For Further Losses Despite Recent Protocol Update

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The price of Dogecoin suffered a drop in price during the market sell-off on September 8th. Bullish developments in the Shiba-Inu-themed cryptocurrency have led to a bearish trend reversal. Vitalik Buterin, the founder of Ethereum, joined the Dogecoin Foundation’s new advisory board in early August 2021 and recently proposed that DOGE should adopt proof-of-stake as a consensus mechanism. The Shiba-Inu-themed cryptocurrency is currently based on energy-intensive mining and its current mechanism is the proof-of-work type.

When asked about the most promising ideas for Ethereum – Dogecoin cooperation, the founder of Ethereum said: “If we can have a secure Doge-to-Ethereum bridge. Would be great“.

Buterin’s statement was well received by the community and considered a bullish development that prepares Dogecoin for the future of cryptocurrencies. Following comments from the Ethereum founder, Dogecoin unveiled an update that reduced transaction fees on the DOGE network.

Bearish trend on Dogecoin, are we awaiting the update of the protocol?

DOGE currently runs on the Dogecoin blockchain, derived from Litecoin’s scrypt technology. The development team is currently testing two minor nodes before the final update is released.

In a recent report, Robinhood stated that 62% of its crypto market’s revenue comes from buying DOGE. The Exchange recently introduced a commission-free recurring buy feature for passionate traders called Dollar Cost Averaging (DCA) and who buy their favorite cryptocurrencies. Considering the popularity of DOGE on Robinhood, adding this feature is likely to increase the number of Dogecoin buyers and owners and should increase the price accordingly.

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The publication of the protocol update is therefore awaited.

Techno-Graphic Analysis and Dogecoin forecasts

After the collapse on September 8, the DOGE failed to rally its head and it looks like it can continue its bearish run and quickly reach the demand area but important bullish swing area.

The price will probably not have large swings or impulses (bullish or bearish) in the next few sessions, pending the update introduced shortly before.

For a look at all of today’s economic events, check out our economic calendar.

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