This morning, the cryptocurrency market saw a significant headline that caused Dogecoin’s price action to drop. The Indian Central Bank came out with firm rejection against adopting cryptocurrencies in the country. There was an announcement from India’s Central Bank (RBI) calling cryptocurrencies “a tool which will wreak havoc on our economy.”
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The Price of Dogecoin Increased Temporarily
Dogecoin’s price action is not in a sweet spot. In just five minutes, comments trashed the planned bull target for next week at $0.1357. As a result, Dogecoin (DOGE) dipped back to its opening level and took another step away from where it had been before.
The price of Dogecoin went down when the news came out. A trend line and an intermediary top-line stopped the bulls from taking the price higher. So instead, the price went back to where it started and looked like it would fall more. A possible target for the price going down is $0.1137 and $0.1100.
Investors may be slow to react, but if they buy the dip, it could increase the price by $0.1197 to the upside. This would open the door towards $0.1242 intraday and possibly again on track for $0.1357.
The US session has only just begun, so economic recovery is time. Maybe even some good news on taxes or regulations before traders move onto other things – providing markets with support at both $0.1197 and psychological levels like barbette above them where buyers seem confident again.
DOGE started the day with a decline as India plans not to regulate cryptos | Source: DOGE/USD chart from Tradingview.com
India To Launch CBDC This Year
The Indian government has revealed its positions on cryptocurrencies and digital currency. They are not going to regulate cryptocurrencies by the central bank. Instead, India’s central bank will be launching central bank digital currency (CBDC) this year.
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On Tuesday, the Indian ministry of finance answered some questions in Rajya Sabha regarding “RBI Cryptocurrency.”
The Finance Minister to state was asked by Rajya Sabha member Sanjay Singh, “whether it is a fact that the government plans on introducing a cryptocurrency regulated by The Reserve Bank of India (RBI).
“No sir,” replied Pankaj Chaudhary, the minister of state in the finance ministry.
Minister Chaudhary explained the difference between the RBI cryptocurrency and traditional paper currency:
RBI does not issue cryptocurrency. Traditional paper currency is a legal tender and is issued by RBI in terms of provisions of RBI Act, 1994. A digital version of traditional paper currency is called central bank digital currency (CBDC).
Indian Finance Minister Sitharaman said during her Feb. 1 budget speech:
The introduction of a central bank digital currency will give a big boost to the digital economy. Digital currency will also lead to a more efficient and cheaper currency management system.
Indian Prime Minister Narendra Modi commented on the upcoming digital rupee launch:
The digital rupee will revolutionize the fintech sector by creating new opportunities and lessen the burden in handling, printing, logistics management of cash.
Featured image from Pixabay, chart from Tradingview.com