Why Dogecoin Is Up 20%

Why Dogecoin Is Up 20%

Bloomberg

(Bloomberg) – After China imposed a record antitrust fine on Alibaba Group Holding Ltd., the e-commerce giant did an unusual thing: It thanked regulators.“Alibaba would not have achieved our growth without sound government regulation and service, and the critical oversight, tolerance and support from all of our constituencies have been crucial to our development,” the company said in an open letter. “For this, we are full of gratitude and respect.”It’s a sign of how odd China’s crackdown on the power of big tech has been compared with the rest of the world. Mark Zuckerberg and Tim Cook would likely not express such public gratitude if the U.S. government were to hit Facebook Inc. or Apple Inc. with record antitrust fines.Almost everything about China’s regulatory push is out of the ordinary. Beijing regulators wrapped up their landmark probe in just four months, compared with the years that such investigations take in the U.S. or Europe. They sent a clear message to the country’s largest corporations and their leaders that anti-competitive behavior will have consequences.For Alibaba, the $2.8 billion fine was less severe than many feared and helps lift a cloud of uncertainty hanging over founder Jack Ma’s internet empire. The 18.2 billion yuan penalty was based on just 4% of the internet giant’s 2019 domestic revenue, regulators said. While that’s triple the previous high of almost $1 billion that U.S. chipmaker Qualcomm Inc. handed over in 2015, it’s far less than the maximum 10% allowed under Chinese law. Alibaba’s shares rose more than 8% Monday in Hong Kong.“We’re happy to get the matter behind us,” Joseph Tsai, co-founder and vice chairman, said on an investor call on Monday. “These regulatory actions are undertaken to ensure fair competition.”The fine came with a plethora of “rectifications” that Alibaba will have to put in place – such as curtailing the practice of forcing merchants to choose between Alibaba or a competing platform – many of which the company had already pledged to establish. But Tsai said regulators won’t impose radical changes to its e-commerce strategy. Instead, he and other executives pledged to open up Alibaba’s marketplaces more, lower costs for merchants while spending “billions of yuan” to help its clients handle e-commerce.Tsai said the company is unaware of any other antitrust investigations into the company, except for a previously discussed probe into acquisitions and investments by Alibaba and other tech giants.“The required corrective measures will likely limit Alibaba’s revenue growth as a further expansion in market share will be constrained,” Lina Choi, a senior vice president at Moody’s Investors Service, said in a note. “Investments to retain merchants and upgrade products and services will also reduce its profit margins.”Alibaba Chief Executive Officer Daniel Zhang on Saturday declared his company now ready to move on from its ordeal, while China’s Communist Party mouthpiece People’s Daily issued assurances that Beijing wasn’t trying to stifle the sector.The Hangzhou-based firm “has escaped possible outcomes such as a forced breakup or divestment of assets. The penalty will not shake up its business model, either,” said Jet Deng, an antitrust lawyer at the Beijing office of law firm Dentons.Beijing remains intent on reining in its internet and fintech giants, a broad campaign that’s wiped more than $250 billion off Alibaba’s valuation since October. The e-commerce giant’s speedy capitulation underscores its vulnerability to further regulatory action – a far cry from just six years ago, when Alibaba openly contested one agency’s censure over counterfeit goods on Taobao and eventually forced the State Administration for Industry and Commerce to backtrack on its allegations.On Monday, shares in Alibaba’s fellow internet giants from social media titan Tencent Holdings Ltd. to food delivery leader Meituan and JD.com Inc. fell on fears they could draw similar scrutiny. “It’s exactly what the market is thinking right now: Tencent and Meituan are next in line if the same standards are to be applied, but even the worst won’t be so bad,” said Zhuang Jiapeng, a fund manager at Shenzhen JM Capital Co.Beyond antitrust, government agencies are said to be scrutinizing other parts of Ma’s empire, including Ant Group Co.’s consumer-lending businesses and Alibaba’s extensive media holdings. And the shock of the crackdown will continue to resonate with peers from Tencent and Baidu Inc. to Meituan, forcing them to tread far more carefully on business expansions and acquisitions for some time to come.What Bloomberg Intelligence SaysChina’s record fine on Alibaba may lift the regulatory overhang that has weighed on the company since the start of an anti-monopoly probe in late December. The 18.2 billion yuan ($2.8 billion) fine, to penalize the anti-competitive practice of merchant exclusivity, is equivalent to 4% of Alibaba’s 2019 domestic sales. Still, the company may have to be conservative with acquisitions and its broader business practices.– Vey-Sern Ling and Tiffany Tam, analystsClick here for the full research.The investigation into Alibaba was one of the opening salvos in a campaign seemingly designed to curb the power of China’s internet leaders, which kicked off after Ma infamously rebuked “pawn shop” Chinese lenders, regulators who don’t get the internet, and the “old men” of the global banking community. Those comments set in motion an unprecedented regulatory offensive, including scuttling Ant’s $35 billion initial public offering.It remains unclear whether the watchdog or other agencies might demand further action. Regulators are said, for instance, to be concerned about Alibaba’s ability to sway public discourse and want the company to sell some of its media assets, including the South China Morning Post, Hong Kong’s leading English-language newspaper.Read more: China Presses Alibaba to Sell Media Assets, Including SCMPChina’s top financial regulators now see Tencent as the next target for increased supervision, Bloomberg News has reported. And the central bank is said to be leading discussions around establishing a joint venture with local technology giants to oversee the lucrative data they collect from hundreds of millions of consumers, which would be a significant escalation in regulators’ attempts to tighten their grip over the country’s internet sector.“The high fine puts the regulator in the media spotlight and sends a strong signal to the tech sector that such types of exclusionary conduct will no longer be tolerated,” said Angela Zhang, author of “Chinese Antitrust Exceptionalism” and director of the Centre for Chinese Law at the University of Hong Kong. “It’s a stone that kills two birds.”For now, it appears investors are just glad it wasn’t worse. In its statement, the State Administration for Market Regulation concluded Alibaba had used data and algorithms “to maintain and strengthen its own market power and obtain improper competitive advantage.” Its practice of imposing a “pick one from two” choice on merchants “shuts out and restricts competition” in the domestic online retail market, according to the statement.The firm will be required to implement “comprehensive rectifications,” including strengthening internal controls, upholding fair competition and protecting businesses on its platform and consumers’ rights, the regulator said. It will need to submit reports on self-regulation to the authority for three consecutive years.The company will have to make adjustments but can now “start over,” Zhang wrote in a memo to Alibaba’s employees Saturday.“We believe market concerns over the anti-monopoly investigation on BABA are addressed by SAMR’s recent decision and penalties,” Jefferies analysts wrote in a research note entitled “A New Starting Point.”Indeed, The People’s Daily said in its commentary Saturday that the punishment was intended merely to “prevent the disorderly expansion of capital.”“It doesn’t mean denying the significant role of platform economy in overall economic and social development, and doesn’t signal a shift of attitude in terms of the country’s support to the platform economy,” the newspaper said. “Regulations are for better development, and ‘reining in’ is also a kind of love.”(Updates with shares and commentary from the fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

Tesla Motors (TSLA) - What’s Going On With Voyager Token, Dogecoin, Binance Coin, XRP, Monero, and PancakeSwap Cryptocurrencies Today?

The cryptocurrency market is in bullish territory, with Bitcoin (BTC) traded 0.2% higher at $59,911 at press time late Sunday, having earlier on Saturday crossed the psychologically important $60,000 mark. Yet, there are several cryptocurrencies outperforming the apex virtual asset and garnering attention.

Voyager Token (VGX): Voyager is trading 18.7% higher at $4.89 at press time. VGX backs the United States-based crypto broker Voyager Digital Ltd. (OTC:VYGVF).

The cryptocurrency is seeing high interest with Voyager announcing earlier this week that its total assets under management (AUM) exceeded $2.4 billion, with the total number of verified users on its platform crossing the one million mark.

Dogecoin (DOGE): Dogecoin is up 17.2% at $0.075 at press time. The cryptocurrency is likely buoyed by another tweet from Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk, which is speculated to be touting the meme asset.

See Also: Exclusive: Dogecoin Creator Says What Sets Meme Crypto Apart From ‘Thousands Of Failed Coins’ Is Being A Meme

Binance Coin (BNB): Binance Coin is up 11.1% over 24 hours and nearly 50% up over a seven-day period to $522.58.

The cryptocurrency which backs the Binance blockchain ecosystem has seen a massive spike this year, up over 1282.5% year-to-date.

A major factor in the run-up for BNB has been its being pitched as an alternative to the Ethereum (ETH) network, which has been battling rising transaction costs and delayed confirms.

The cryptocurrency, which now has a market capitalization of over $81 billion, is also buoyed by the rise in popularity of decentralized finance (DeFi) projects and speculations that Binance could follow Coinbase’s path — raising funds through a stock offering.

See Also: How to Buy Coinbase IPO (COIN) Stock

XRP (XRP): XRP is down 3.3% over 24 hours to press time at $1.34 but has surged 106.5% over seven days to $1.34.

The cryptocurrency backing the Ripple payments network has been surging in recent weeks, having scored multiple victories in a lawsuit from U.S. Securities and Exchange Commission.

CoinDesk also earlier noted that XRP has a dedicated worldwide base of supporters, who do not necessarily see the SEC lawsuit as a threat.

Monero (XMR): Monero is up 13% over 24 hours to $331.82. The privacy-oriented cryptocurrency has surged about 146.6% year-to-date.

Among recent news, Haveno, a Monero-based decentralized exchange (DEX) launched publicly this week. The team behind the project said the DEX was launched in response to calls from the community for a “native, decentralized and private way to exchange Monero for fiat currencies and other cryptos.”

Cryptojacking, which is the illegal mining of cryptocurrencies on other people’s devices, using Monero has also dropped among the latest market boom since September 2020, as per the “Cloud Threat Report” from Palo Alto Networks.

PancakeSwap (CAKE): PancakeSwap is up nearly 16% over 24 hours and 55.6% over seven days to $26.18.

The cryptocurrency backs the namesake DEX based on the Binance Smart Chain (BSC).

PancakeSwap is benefitting from the rise in DeFi popularity, alongside investors seeing alternatives to the Ethereum network.

The project has also been putting a string of bullish news, including reporting 900,000 transactions in a single day earlier this week, which it said compared with Ethereum’s 1.3 million transactions.

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Dogecoin Price Prediction: DOGE pauses before continuing 35% ascent

Dogecoin price breached an ascending triangle pattern on April 11, triggering a bull run.

DOGE spike nearly 17% in a single candle on the 12-hour chart hitting $0.080.

Now, a retracement to the immediate support level at $0.071 seems likely before it starts to climb again.

The Dogecoin price shows the exhaustion of buying pressure resulting in a pause of the uptrend.

Dogecoin price at inflection point

The Dogecoin price produced an ascending triangle pattern obtained when the series of highs and swing lows are connected using trend lines. Such a price action shows aggressive buying pressure, and so, the breakout tends to be a bullish one.

A decisive close above the triangle’s base at $0.064 will signal the start of a 35% upward trend to $0.087. This target is determined by adding the distance between the first swing high and low to the horizontal supply barrier at $0.064.

On April 11, DOGE buyers pushed the meme coin price from $0.063 to $0.080 in a single candlestick on a 12-hour chart. This 26% upswing caused the Dogecoin price to shatter major supply zones at $0.069 and $0.071.

A minor retracement seems to have begun, which has resulted in a 9% correction as of this writing. The immediate support level at $0.071, created by the Momentum Reversal Indicator’s (MRI) breakout line, appears to be an obvious choice.

Therefore, investors can expect the Dogecoin price to begin its second leg from here. The resistance level at $0.080 and $0.082 might deter the upswing. Hence, slicing through these levels is imperative for the meme coin to reach its target at $0.087.

DOGE/USDT 12-hour chart

However, if the correction slices through the breakout line at $0.071, the Dogecoin price might be in trouble. Such a move would likely produce a 4% retracement to $0.069 or a 7% pullback to $0.066.

The bullish thesis’s invalidation will occur if DOGE pierces the ascending triangle’s base at $0.064 and trades under this level for an extended period.

In such a case, the dogecoin price could slide to $0.061 or 0.059.