- Dogecoin co-founder recently revealed that an Ethereum bridge is being built to boost DOGE adoption.
- An Ethereum bridge could see a rise in the utility of Dogecoin in the NFT and DeFi sectors.
- The completion of a DOGE-ETH bridge would see greater compatibility with the Ethereum ecosystem.
Dogecoin co-founder Bill Markus recently revealed that the meme-based cryptocurrency would require an Ethereum bridge and inclusion by non-fungible token (NFT) marketplaces in order to see mass adoption of its native asset, DOGE.
Dogecoin to enter into NFT marketplaces
In a recent Twitter post, Markus stated that the completion of an Ethereum-Dogecoin bridge, as well as NFT platforms including Opensea allowing for DOGE to be used for purchases, would “help Dogecoin.”
Since NFTs have raked in high demand with cryptocurrency, enabling DOGE to be used for token purchases would increase its utility.
The completion of an Ethereum-Dogecoin bridge could see the asset eventually be integrated with top ETH-based NFT platforms. In addition, the bridge would also enable users to send DOGE from its native blockchain to the Ethereum blockchain. This would also enable the meme-based cryptocurrency to transact in the decentralized finance (DeFi) sector.
Ethereum co-founder Vitalik Buterin previously stated that it would be a bullish push for DOGE if an ETH bridge was created.
Markus further revealed that the DOGE-ETH bridge is currently being developed.
Dogecoin price attempts to escape bearish outlook
Dogecoin price has printed a descending triangle pattern on the 4-hour chart, suggesting a bearish narrative for the meme-based cryptocurrency. However, DOGE appears to be attempting to escape the pessimistic forecast as it strives to break above a crucial level of resistance.
The governing chart pattern suggests that DOGE is at risk of a 13% plunge if it drops toward the lower boundary of the triangle at $0.194. However, Dogecoin bulls have tried to reverse the period of underperformance as the token neared the topside trend line of the technical pattern at $0.205.
However, DOGE appears to be trapped below this level as additional obstacles appear at the 50 four-hour Simple Moving Average (SMA), accompanied by the resistance line given by the Momentum Reversal Indicator (MRI) at $0.207.
Considering that DOGE was unable to surge above the upper trend line of the triangle, it could suggest that Dogecoin price could be pressured to move lower instead. The first line of defense for the meme token is at the 78.6% Fibonacci retracement level, which coincides with the 20 four-hour SMA at $0.200.
Dogecoin may retest the downside trend line of the triangle at $0.194 before showing additional directional cues.