Bitcoin noted a brief flash crash towards the end of last week. As a result, the investor sentiment got dented and most cryptos started trading in red. The same momentum has been carried forward this week too. At press time on Monday, the aggregate crypto market cap was down by 0.61% and was seen hovering around the brink of $1 trillion.
Alongside Ethereum and other top altcoins, even meme-coins felt the pinch of Bitcoin’s downfall. Dogecoin shed almost 10% of its value over the past week and was priced around $0.074 on March 6.
Over the past few days, the $0.08 level acted like a strong support for Dogecoin. However, towards the end of last week, Dogecoin dropped below the same, flipping the aforementioned level to a resistance. Since then, DOGE has been highly underbought.
Like shown below, Dogecoin was in a similar situation in mid-November last year. It consolidated in the range between $0.095 and $0.071, before dropping to a new local low and recovering. The same support is still valid. So, if the bearish conditions intensify, DOGE could either drop down to $0.071 or $0.068 in the days to come.
Also Read – Dogecoin: As Bulls-Bears Continue To Tussle, DOGE Bags New Listing
Dogecoin’s roadblocks on its path to $0.1
On the upside, Dogecoin has ample room to glide up to $0.1. However, it has a bunch of resistances to overcome around $0.08, $0.092, the EMA cluster and $0.096, like chalked out on the chart above. In fact, even from the on-chain perspective, DOGE’s largest resistance nest lies in the said region.
According to data from ITB, in the price bracket between $0.077 to $0.094, around 391.75k addresses have together bought a total of 34.69 billion DOGE tokens. Thus, as and when the price rises, the said market participants would break even and be triggered to cash out.
That said, it is essential to note that the largest meme coin is quite closely knit with with Bitcoin and Ethereum at the moment. On Monday, it shared a correlation of almost 0.9 with both the assets. Thus, it’d be the market leaders that will call the shots and the rest of the altcoins, including DOGE will merely follow the directional bias.
On Monday, both Bitcoin and Ethereum’s gains were in a break-even state on the 24-hour window. They were trading at $22.4k and $1.56k at press time.
Also Read: HEX Rises 155% In February, Dogecoin Drops 16%