Dogecoin Price at Risk? Dogechain Shutdown Comes as DOGE Tests Make or Break Support

Dogecoin has been experiencing downward pressure for quite some time now, from the significant losses that it has made. Now, the DOGE price is at $0.0755, almost 87.4% below the highs that it recorded in 2022 at $0.60. In light of the repeated failed attempts at recovery, traders are once again keeping an eye on one crucial region that may define the DOGE price action. Meanwhile, there is another problem with the Dogecoin environment. Dogechain, which is a Layer 2 network developed for DOGE, is being shut down. Users are given 60 days to withdraw their bridged assets before they get locked out of accessing them. Dogechain Gives Users a Limited Exit Window Dogechain has officially confirmed that it is shutting down its operations, after noting the current circumstances as being unsustainable. The platform provided its users with the ability to bridge DOGE, native to the Dogecoin network, to its own Ethereum-based blockchain that would allow the token to be utilized for decentralized finance and NFTs among other uses. It is now the bridge that presents the issue. After bridging DOGE to Dogechain, the original coins are locked within the Dogecoin network, while the bridged DOGE is created within Dogechain. Once the bridge is shut down, there won’t be any possible way to convert the bridged DOGE to the original one. It has been announced by the project team that users have about two months left to withdraw their funds. DOGE held on the main Dogecoin blockchain is not affected. Only assets still sitting on Dogechain are at risk. The DOGE Price Is Testing a Major Support Zone We had a look at the long-term DOGE chart, and the overall trend is still pointing lower. The DOGE price has dropped from around $0.60 in 2022 to about $0.0755 today. That works out to a decline of roughly 87.4%. Source: X/@im_amanEvery recovery over the past few years has been followed by another lower high, keeping the broader downtrend intact. One level stands out on the chart. The $0.07-$0.08 area is marked as historical major support, and that’s exactly where the DOGE price is trading now. If buyers manage to defend this zone, attention could turn to $0.10, followed by $0.15. If the support gives way, the next technical level sits closer to $0.05, with very little support in between. Dogecoin Still Has a Few Bullish Catalysts The chart may look weak, but there are still a few developments that could influence the DOGE price over time. The proposed Digital Asset Market Clarity Act would officially classify DOGE as a digital commodity, removing some of the legal uncertainty surrounding the asset. Institutional interest, however, has been fairly limited so far. The three U.S.