Why Dogecoin Rising Above $0.11 Is Crucial for a DOGE Rally

Dogecoin continues to mirror the overall movement of the cryptocurrency market, which is primarily influenced by Bitcoin. Individually, Dogecoin has faced considerable challenges as substantial sell-offs caused its price to drop by an additional 8%. However, there is potential for a turnaround if this meme coin manages to surpass this critical level.

Dogecoin Strives to Defy Bears, Aims to Surpass $0.11

In a recent post on X (formerly Twitter), crypto analyst Ali Martinez provided a detailed explanation of the intricate scenario surrounding the price of Dogecoin. The analyst begins by highlighting that the meme coin displayed a sell signal earlier this week, as indicated by the price drop observed between Sunday and Monday.

According to the crypto analyst, this sell signal was identified using the TD Sequential indicator on the weekly chart of DOGE. The altcoin is currently following the expected scenario, particularly because the analyst demonstrates that it is consistently encountering resistance at this level.

Moreover, due to the increasing resistance observed on the weekly chart, DOGE is also confronted with the potential for further downside. If the downward trend persists, there is a chance that the price could decline to levels such as $0.085 or even $0.078, as explained by Ali.

Nevertheless, it is important to note that there is still a possibility for Dogecoin to reverse the current bearish sentiment and potentially transition into a more favorable market condition. According to Ali's analysis, Dogecoin has the potential to counteract this bearish trend by surpassing the $0.11 mark. However, despite several weeks of recovery, DOGE has been unable to overcome this price level, making it a significant obstacle to its short-term price rally.

DOGE Flipped By Avalanche (AVAX)

One of the negative consequences of the ongoing downtrend in the Dogecoin price is its proximity to being ousted from the top 10 cryptocurrencies based on market capitalization. As AVAX has experienced a significant surge over the past month while DOGE has struggled to keep up with the market, Avalanche has now surpassed Dogecoin and taken its place on the list.

At the time of writing, AVAX's market cap stands at over $14.6 billion, surpassing DOGE's market cap which currently sits at $13.5 billion. As a result, AVAX has now secured its position as the 9th-largest cryptocurrency by market cap, while Dogecoin has been pushed down to 10th place.

The disparity between AVAX and DOGE can be attributed to AVAX's impressive 82% rise in just one week, compared to DOGE's relatively modest 7% increase. However, there is a possibility for DOGE to regain its position and surpass Avalanche once again if it were to experience a further 20% rise from its current market value, which would place its market cap at approximately $16 billion.