Dogecoin (DOGE) currently faces a critical price level at $0.11, which could significantly impact its future performance. Recent analyses emphasize that this resistance level may determine whether DOGE will experience a bullish breakout or succumb to further bearish pressure.
Over the past month, Dogecoin has gained 13.66%, rising from a low of $0.088 to a high of $0.132. However, it has recently struggled, experiencing an 11.422% decline over the past week. As a result, its current trading price sits around $0.108.
Bearish Sentiment Dominates the Market
Crypto analyst Kevin argues that bearish sentiments are currently dominating Dogecoin’s market. He notes that DOGE faked a breakout from the macro falling wedge, signaling further bearish movement. Additionally, the cryptocurrency has fallen below all key moving averages on both the 1-day and 4-hour charts. This performance reflects a weak market. Kevin believes Dogecoin must retrace to $0.08 to find support before it can resume its uptrend.
Key $0.11 Level Holds Massive Importance
Meanwhile, another analyst, Ali Martinez, focuses on the importance of the $0.11 resistance level. He points out that over 36.40 billion DOGE is held by 60,210 addresses at this price level. If Dogecoin fails to reclaim $0.11, many investors might sell off to minimize their losses. A sell-off of this magnitude would likely lead to further price declines, extending Dogecoin’s bearish trend.
Metrics Point to Weakening Market Conditions
Source| SantimentDogecoin’s weakening market condition is further reflected in various metrics. Over the past week, Open Interest on exchanges dropped from $224 million to $129.6 million, indicating that investors are closing positions without new entrants. Similarly, Dogecoin’s daily active addresses fell from 144.8k to 74.7k, while price DAA divergence turned negative three days ago. This highlights decreasing user activity and interaction with the Dogecoin ecosystem, signaling a reduction in demand.
In conclusion, Dogecoin’s modest recovery is outweighed by larger weekly losses. If it can’t reclaim $0.11, a deeper sell-off looms. However, if it does, a bullish reversal could be in sight.
Read Also: Dogecoin Targets $0.20 as Whales Accumulate 1 Billion DOGE
The post The Battle for $0.11: Will Dogecoin Survive the Bear Market? appeared first on FXcrypto News.
