On Friday, the broader market had yet again succumbed to the pressure induced by bears. Notably, 92 out of the top 100 coins had registered losses over the past day and were seen trading in red at the time of press. Exchanging hands at $0.000000003124 after noting an 8% daily dip, BabyDoge Coin was one among the worst affected coins.
Things looked even more choppy on the price chart for BabyDoge. Around this time last week, the coin slipped below its 50 Day Moving Average [DMA] and has been trading below it ever since.
BabyDoge also lost another crucial support, the 61.8% Fib level, on Thursday. The said level, coinciding with $0.000000003183, did aid the coin for five straight days in a row earlier last week. But now, with BabyDoge dunking below the same, the prospects of the coin registering another dip in the short-term has augmented.
BabyDoge’s wilting volumes to further play spoilsport?
Well, at this stage, it should be noted that the coin’s trading volume has already started shriveling. Over the past 4 days, the value of this metric has been hovering in the $10 million to $13 million range. The range was typically higher [$15 million to $21 million] before that.
Trade volume is essentially a double-edged sword, for it gauges both the buy and sell-side transactions. Thus, a rise or fall in this metric doesn’t always guarantee a pump or dump in the price of the underlying asset.
It, however, acts as an ideal yardstick to measure the community interest with respect to any underlying asset. Keeping the current dunking numbers in mind, it wouldn’t be wrong to assert that market participants’ interest apropos BabyDoge has started withering.
As of now, BabyDoge is typically engulfed within a descending channel on its price chart and is trading more closely towards the lower trendline than the upper. Owing to the broader market bearish sentiment, the fading community interest, and bulls capitulating, BabyDoge Coin could witness a 20%-21% free fall to $0.000000002316 over the weekend.
However, if the lower trendline of the channel steps up and dutifully acts like support, then BabyDoge’s losses could be capped under 6%-7%. Additionally, it should also be noted that the Huobi listing catalyst does have the potential to turn things back in favor for BabyDoge. Post every major listing, this coin has subjected itself to notable pumps. Thus, in such a scenario, it’d be interesting to see if the coin follows the technical path during the weekend or not.