The Battle for $0.11: Will Dogecoin Survive the Bear Market?

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

Based off this #Dogecoin chart we have some simple facts to state. Broke out and faked out of the macro falling wedge = Bearish. Lost all key 1D and 4HR moving averages = Bearish. The only logical next step is to go revise .08 cents and see if we can build a new base. pic.twitter.com/Fn1qRgIjq9
— Kevin (@Kev_Capital_TA) October 3, 2024

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

60,210 addresses bought 36.40 billion $DOGE at $0.11! #Dogecoin must reclaim this level soon to sustain a bullish outlook. Otherwise, a failure to do so could lead to a sell-off as investors may seek to minimize losses. pic.twitter.com/BABwVfPGem
— Ali (@ali_charts) October 3, 2024

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

Dogecoin’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.

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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.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.