Prominent crypto analyst Ali Martinez has predicted a potential surge in Dogecoin’s price, projecting a move to $2 if the meme-inspired cryptocurrency maintains its crucial support level at $0.16.
Martinez, known for his technical and on-chain analysis, emphasized that traders and investors should closely monitor this level, as a successful rebound could trigger significant upward momentum.
The statement has sparked optimism within the Dogecoin community, as bullish traders anticipate a possible breakout, reinforcing the idea that DOGE still holds substantial upside potential in the ongoing market cycle.
Dogecoin Bullish Outlook Amid Liquidations
Dogecoin has surfaced with some bullish outlook, given that the number of active $DOGE addresses surged by 270% in the last 24 hours, moving from 71,000 to 264,000.
However, Dogecoin has experienced a sharp decline over the past week, dropping nearly 19% and currently trading around $0.173 during the early European trading session on Monday.
The recent correction has resulted in a wave of liquidations, with over $22 million in liquidations occurring in the past 24 hours alone and a staggering $78 million wiped out over the past week, according to data from CoinGlass.
The increased volatility has left many traders uncertain about DOGE’s short-term trajectory, as it continues to struggle under selling pressure from large market players.
Dogecoin’s Current Market Standing and Key Metrics
As of today, Dogecoin (DOGE) is priced at $0.1763, reflecting a 6.62% decline in the past 24 hours and a 19.22% drop over the past week.
The cryptocurrency maintains a substantial trading volume, exceeding $2.1 billion in the last 24 hours, demonstrating continued market interest despite the downturn.
With a circulating supply of 150 billion DOGE, the current market capitalization stands at approximately $26.24 billion, positioning Dogecoin among the top digital assets in the crypto space.
However, the persistent downward pressure suggests that the upcoming days will be crucial in determining whether DOGE can regain bullish momentum or continue its decline.
Key Support Level at $0.16 Could Define Dogecoin’s Next Move
The $0.16 support level is now a critical threshold for Dogecoin’s price action.
If DOGE manages to hold this level and bounce back, as Martinez predicts, it could signal the beginning of a bullish reversal, potentially leading to a rally toward the highly anticipated $2 mark.
However, failure to maintain this support could result in further losses, exacerbating bearish sentiment among traders.
As the market continues to react to broader macroeconomic conditions and Bitcoin’s price movements, all eyes remain on Dogecoin’s next decisive move, which could either validate the analyst’s bullish outlook or confirm extended downside risk.