Dogecoin received 5 million DOGE in a bid to improve the project, DOGE briefly increased but not last
The Dogecoin Foundation announced a $5 million DOGE donation to the ecosystem’s development fund as a year-end gift to its community. The foundation said that the contribution was important to improve the ecosystem in the post from December 31. The team did specify that developers and anyone who contributed to getting DOGE to where it is today will receive a portion of the fund.
Dogecoin Foundation adds another bag as DOGE fails to hold support
“The DOGE held in the new multi-signature wallet will disburse rewards to developers of Dogecoin Core for work on all contributions, no matter how big or small. This new multi-signature wallet will be operated by Dogecoin Core developers and members of the Dogecoin Foundation”, the post stated.
In response to the news, DOGE immediately increased by 2.42% during the previous 24 hours. The daily chart indicated that DOGE had been unable to maintain its resistance since December 5. On December 21, the resistance decreased even further, from $0.11 to $0.07.
Despite a brief period of recovery, DOGE eventually started to lose support. At the time of publication, the support level was $0.067. Further evidence that DOGE would not be able to maintain the recent price surge came from the Moving Average Convergence Divergence (MACD) indicator.
The MACD signal indicated that momentum was negative. The 12-26 Exponential Moving Average (EMA) difference, as seen by the MACD, was below the histogram, leading to this conclusion. As a result, the short-term DOGE movement may decline below the current price.
Source: TradingView
Santiment suggested that DOGE wasn’t expected to see significant price changes. Price volatility over one day was very low. However, the 24-hour active addresses indicated that the community would react lazily to transactions. The 120,000 addresses live 24 hours a day as of this writing confirm the lack of crowd involvement.
Source: Santiment
The Dogecoin Foundation also pointed out that holders of the wallets where the funds were kept had no right to distribute them without permission. “Custodians do not have any rights to the money held in the wallet, individually or as a group. All distributions shall be publicly announced and distributed widely across social media channels to the best of the abilities of the custodians”, they stated.
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