The alpha memecoin, Dogecoin (DOGE), continues to benefit from market volatility. The coin lost its previous gains following the bearish market trends. The nascent coin BTC printed a decline of 5% last week and ETH was down around 8%. Similarly, the DOGE token was down over 8% on its weekly chart, losing 1.27% on the day. At $0.083, Dogecoin is trading dangerously close to its week’s low of $0.083. Any bearish move can pull it down, losing its substantial gain.
Dogecoin, like the rest of the market, fell after FTX’s implosion earlier this week. While top coins struggle to recover, Dogecoin has still managed to attract traders in recent days. Although trading volume has fallen by more than 40% in the past day, there is still hope for a recovery in the coming days.
Doge Founder Speaks Out Against SBF’s FTX Comeback
On Wednesday, Sam Bankman-Fried took to Twitter to announce his plans to “increase liquidity, make consumers whole and revive.” SBF’s announcement follows the exchange’s “Chapter 11” filing for bankruptcy on Friday, November 11. But Billy Markus, known on Twitter as Shibetoshi Nakamoto, had none of it. The Doge founder insisted that SBF shouldn’t be given a second chance, given the role he played in the FTX debacle.
The former CEO of FTX says his companies’ monthly asset accumulations have exceeded their liabilities. These claims come despite accusations that FTX hid a $10 billion black hole in its accounts. However, SBF clarified that these were not transferable securities. In a series of tweets, SBF disclosed that FTX’s assets totaled $8 billion. Of that number, $5.5 billion was classified as “semi-liquid” and $3.5 billion was unsaleable.
The cryptocurrency entrepreneur went on to state that Alameda has a margin position on FTX International and FTX US. He added that the company has the resources to compensate all consumers. However, the Dogecoin developer is strongly opposed to this idea. According to him“those who commit huge massive frauds” should not have “a second chance to perpetrate huge massive frauds again”.
Can Doge reach $0.1? What the charts say
In the wake of the market crash caused by The collapse of FTX, the price of dogecoin fell by more than 43%. But after hitting a low of $0.0790, the cryptocurrency rose. Memecoin is currently trading at $0.0850 and may need some help from the bulls to get back to a strong position.
According to the RSI, there has not been much of an increase in buying pressure. Consequently, the cryptocurrency traded below its resistance level of $0.0914. DOGE may revisit the $0.0914 resistance level again if the buying pressure intensifies. At this point, it may break above or perhaps turn this level into support.
Still, it has to overcome the inefficiency located at $0.0962, known as the Fair Value Gap (FVG). If it manages to break out of this range, it will approach an increase of 18.5% and reach $0.1000. The cryptocurrency market is still quite sensitive to corrections. Traders who are only waiting for good news should therefore wait before investing their money there.
Featured image from Pixabay and chart from TradingView.com