Critical $0.11 Term for Dogecoin to Prevent Further Declines

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Dogecoin (DOGE), the meme-based cryptocurrency, has recently experienced a sharp decline in price, falling back after a brief rally to $0.12 last week. Amid this downturn, prominent crypto analyst Ali has highlighted the critical importance of reclaiming the $0.11 price level for Dogecoin to avoid further negative consequences.

In a recent post on Elon Musk’s social media platform X, Ali emphasized that around 60,210 addresses purchased approximately 36.40 billion DOGE tokens at the $0.11 price mark. These addresses are seen as significant support levels, and if Dogecoin remains below $0.11, there is a risk that holders may start selling their assets to mitigate potential losses. This could in turn increase selling pressure and accelerate Dogecoin’s downward trend.


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Ali’s analysis underscores that Dogecoin must reclaim the $0.11 level soon to sustain a bullish outlook. Failure to do so could trigger a sell-off as investors may seek to minimize their losses. In the past week, Dogecoin has seen a 10.8% drop in price, and the decline has continued over the past 24 hours, with the asset shedding 4.2% of its value and currently trading around $0.1019.

This price drop has had a direct impact on Dogecoin’s market capitalization, which has fallen from over $17 billion last Thursday to around $14.9 billion today. Additionally, the 24-hour trading volume for Dogecoin has also decreased significantly, from $1.4 billion last Thursday to just above $1 billion.

Despite the ongoing slump, some analysts remain optimistic. Trader Tardigrade, a popular crypto analyst, suggested in a recent post on X that the recent dip in Dogecoin’s price might be a “retest” of its descending trendline following a recent breakout. According to Tardigrade, Dogecoin’s relative strength index (RSI), which measures the magnitude of recent price changes, shows a lower low while DOGE maintains a higher low position. This technical analysis divergence could indicate a potential trend reversal in favor of a bullish move. Tardigrade advised investors to understand technical analysis to avoid being shaken out of the market.