Dogecoin Teeters at $0.1667—Meme Coin Make-or-Break Moment Before $0.183 Retest

Dogecoin’s flirting with disaster as it retests the $0.1667 support level—a line in the sand separating ’HODL’ from panic sells. Traders are watching the charts like hawks, waiting to see if DOGE can muster enough meme magic to bounce back toward $0.183.

If it fails? Well, let’s just say the ’people’s crypto’ might need another Elon tweet to avoid becoming another casualty of crypto’s endless volatility circus. Because nothing says ’sound investment’ like a digital asset that mooned because of a joke.

Source: X

Martinez observed that Dogecoin was testing a key support level around $0.167 at press time. If this support holds, it will spark a strong rebound towards $0.175 and even rally to $0.183.

Based on this analogy, Doge needs a close above $0.1667, a level that seems out of reach, as the memecoin has struggled to successfully hold above it for the past three days.

Can Dogecoin rebound?

According to AMBCrypto’s analysis, DOGE was experiencing strong downward pressure at the time of writing, amid bearish sentiment and low network activity.

For starters, Dogecoin’s Weighted Sentiment held within negative territory over the past three days. A negative Weighted Sentiment indicates strong bearishness among market participants.

As such, most participants have a negative perception of the memecoin and expect prices to depreciate even more.

Source: Santiment

This bearishness has forced most traders and investors to take a step back in the market. Inasmuch so, Dogecoin’s network activity is sharply dropping as well.

Looking at the price DAA divergence, this metric has remained negative over the past seven days.

Source: Santiment

A negative price DAA implies that network activity is relatively low relative to current prices. As such, even though prices are declining, network activity has dropped at a faster rate, leaving prices higher.

Thus, Dogecoin’s prices are not backed by actual demand, and for price stability, the memecoin needs to drop.

Source: Santiment

With most market players bearish, they were aggressively shorting the memecoin. Looking at the DYDX Exchange Funding Rate, it has held within negative territory over the past week.

With short dominating, it implies that investors expect prices to drop further.

What’s next for DOGE?

At press time, downward momentum appeared to be strengthening. This was evidenced by the declining RVGI, which has dropped to -0.12.

Since making a bearish crossover, RVGI has dropped strongly to a negative value. Such a drop reflects strong downward momentum, with the memecoin closing with lower lows.

Source: TradingView

If the downtrend continues amidst strong bearish sentiment, we could see DOGE drop even further.

A continuation of the trend will push the memecoin further downwards, and it will find support around $0.161.

For the levels predicted by Martinez to hold, buyers need to displace sellers who are currently attempting to take over the market.

Therefore, Dogecoin needs external factors such as good macroeconomic reports or favorable rate cuts to incentivize buyers to return to the market. Such development could propel DOGE towards $0.178.