Dogecoin is currently mirroring the broader crypto market trend, which is closely tied to Bitcoin’s performance. On its own, Dogecoin has faced significant downward pressure as large sell-offs caused an 8% price drop. However, there is potential for a turnaround if the meme coin can break through a crucial resistance level.
Dogecoin’s Crucial Resistance Level
Crypto analyst Ali Martinez recently highlighted the challenging situation Dogecoin is facing. The analyst pointed out a sell signal on the DOGE weekly chart, indicating a price decline early in the week.
The sell signal was identified using the TD Sequential, and the altcoin continues to encounter resistance at this level, potentially signaling further downside.
Source: Ali Charts on X
According to Ali, if Dogecoin continues to fall, the price could drop to $0.085 or even $0.078. However, there is still hope that the meme coin can reverse the bearish trend by surpassing the $0.11 level, a significant roadblock to its price rally.
DOGE bears make a play for control | Source: DOGEUSD On Tradingview.com
DOGE’s Ranking Challenge with Avalanche (AVAX)
In addition to the price challenges, Dogecoin faces the risk of dropping out of the top 10 cryptocurrencies by market cap, as Avalanche (AVAX) has overtaken its position. AVAX currently sits as the 9th-largest cryptocurrency by market cap, with DOGE slipping to 10th place.
The difference in ranking is attributed to AVAX’s substantial market cap growth compared to DOGE’s more modest rise. However, DOGE could reclaim its position if it experiences a significant market cap increase in the near future.