Dogecoin is still following the same trajectory as the broader crypto market which is being led by Bitcoin. On its own, Dogecoin has also seen some significant negative headwinds as large sell-offs sent its price spiraling down by another 8%. However, this may not be for long if the meme coin is able to break through this crucial level.
Dogecoin Must Invalidate Bears Above $0.11
In a post on X (formerly Twitter), crypto analyst Ali Martinez explained the complex scenario that the Dogecoin price has encountered. The analyst starts out by showing that the meme coin had flashed a sell signal this week, as evidenced by the price decline between Sunday and Monday.
This sell signal was observed by the crypto analyst using the TD Sequential on the DOGE weekly chart. The altcoin is already playing out this scenario, especially as the analyst shows that it is continuously facing resistance at this level.
Source: Ali Charts on X
DOGE is also facing the possibility of further downside due to this mounting resistance on the weekly chart. If it continues to fall, then there is a possibility that the price could drop back to $0.085, or even $0.078, as Ali explains.
However, there is still the possibility that Dogecoin can turn the current bearish tide around into a favorable one. Ali explains that the meme coin can negate this bearish trend if the DOGE price were able to beat $0.11. This price level has remained elusive for DOGE even through multiple weeks of recovery, making it the major roadblock to its price rally in the shorter term.
DOGE bears make a play for control | Source: DOGEUSD On Tradingview.com
DOGE Flipped By Avalanche (AVAX)
One of the many downsides of the downtrend that has plagued the Dogecoin price is the fact that it is close to being kicked out of the top 10 cryptocurrencies by market cap. Following AVAX’s run over the past month and DOGE not keeping up with the market, Avalanche has now flipped Dogecoin on the list.
AVAX’s market cap is currently sitting above $14.6 billion at the time of this writing while DOGE’s market cap is still at $13.5 billion. This means that AVAX is now the 9th-largest cryptocurrency by market cap while Dogecoin has been pushed down to 10th place.
The disparity comes as a result of Ajax rising over 82% in one week while DOGE only rose around 7%. However, DOGE could overtake Avalanche again if it were to rise another 20% from its current market value. This would put its market cap at around $16 billion.