Dogecoin Walks on a Tightrope as a Make-or-Break Situation Pops Up with $0.16 Being Decisive
With its daily trading volume having slipped by 28.27%, Dogecoins market activity and liquidity have diminished.
This can be showcased by the fact that, according to CoinGecko data, the price of DOGE has dropped by 14% in the past week to hit $0.157 at the time of writing.
As a result, renowned market analyst, Ali Martinez, believes that Dogecoin is in a dilemma, with $0.16 being a critical zone.
Martinez pointed out, Dogecoin is at a make-or-break level. If $0.16 holds, a rally to $0.57 could follow. If it fails, a drop to $0.06 becomes likely.
Since Dogecoin finds itself on a tightrope, the apex meme coin will need to dust itself off and reclaim $0.16 to rekindle the bullish fire.
Is all Hope Lost?
As Dogecoin traverses bearish territory, all hope is not lost for the meme coin OG.
This is founded on the formation of an inverse head and shoulder pattern, which could signal DOGEs bottom.
As a result, market analyst Trader Tardigrade acknowledges that this chart formation is a welcome move that could see Dogecoin reclaim the psychological price of $0.20.
The analyst added, Dogecoin has undergone a spring of Wyckoff Accumulation. The current pattern doesnt perfectly match the typical Wyckoff Accumulation since the price in phase B shifted slightly higher than usual. Yet, Doge does share most characteristics of Wyckoff Accumulation.
Notably, the Wyckoff Accumulation usually signals the end of a downtrend since smart money or large institutions quietly amass assets after an extended downtrend.
Interestingly, this period is usually depicted by sideways price action, making it difficult for retail traders to spot.
Meanwhile, Cardano founder Charles Hoskinson recently disclosed efforts to integrate the network with major blockchain ecosystems, such as Dogecoin, Chainlink, and Bitcoin, to expand its use cases and reach.
Text source: ZyCrypto
