Dogecoin (DOGE) Faces Growing Market Pressure as Its Price Action Draws Parallels to the Bitcoin-Gold Ratio

Bloomberg Intelligence strategist Mike McGlone compared Dogecoin's price action to Bitcoin's valuation against gold. He argued that DOGE's speculative nature aligns with high-risk assets that historically revert after unsustainable rallies.

Dogecoin (DOGE) faces growing market pressure as its price action draws parallels with the Bitcoin-Gold ratio, fueling speculation over a potential pullback. The meme coin, now trading at around $0.1845, has seen a 8.45% gain over the past 24 hours.

Dogecoin Correlation Raises Market Concerns

Bloomberg Intelligence strategist Mike McGlone compared Dogecoin’s performance to Bitcoin’s valuation against gold, highlighting the speculative nature of DOGE and its susceptibility to reversion after significant rallies.

“The ratio of gold ounces equal to Bitcoin trading almost tick-for-tick with Dogecoin may show the risks of reversion in highly speculative digital assets,” McGlone noted on social media, alluding to possible deflationary implications.

McGlone’s remarks come as DOGE trades above the $0.18 mark, driven by broader market momentum. While the uptrend reflects growing risk appetite, its alignment with speculative metrics like the Bitcoin-Gold ratio raises concerns over potential reversals in the coming sessions.

Dogecoin Struggles to Escape Falling Wedge—Breakout or Breakdown?

Dogecoin remains trapped in a falling wedge pattern, struggling to gain momentum for a breakout. Despite short-term relief rallies, the meme coin faces strong resistance, keeping it in a downtrend.

The daily chart shows DOGE trading at $0.1666, unable to push past $0.1781, where the 23.6% Fibonacci retracement level combines with the upper wedge trendline. This zone has repeatedly acted as a supply area, making it difficult for bulls to establish control.

DOGE’s latest attempt to move higher failed, with the price dropping 4.77% yesterday, signaling continued selling pressure. While the MACD and signal lines remain in positive alignment, the fading momentum in histogram bars suggests that bulls are losing strength.

Trader Tardigrade pointed out a bearish tweezer candlestick formation, which often leads to further downside. If DOGE fails to hold the $0.143 support level, a move toward the $0.10 psychological mark becomes increasingly likely.

Can DOGE Defy the Bears? Analyst Sees 16% Upswing

Despite growing bearish sentiment, some analysts remain optimistic about DOGE’s short-term outlook. Crypto analyst Ali Martinez highlighted an ascending triangle pattern on the 4-hour chart, suggesting that a breakout above $0.177 could trigger a 16% rally.

“Dogecoin $DOGE busts loose! Triangle breakout could spark a 16% swing,” Martinez wrote on social media, highlighting bullish continuation signs.

However, broader market conditions remain crucial. DOGE’s ability to establish higher lows could determine whether it breaks out or remains range-bound between $0.143 and $0.176.

Whale Activity and Market Sentiment

On-chain data reveals a sharp drop in the number of Dogecoin millionaires, reflecting the asset’s declining price. According to Bitinfocharts, addresses holding over $1 million worth of DOGE have decreased significantly, suggesting that whales have either reduced exposure or reallocated funds.

Interestingly, some whales have been accumulating despite market turbulence. Between March 9 and March 10, large holders added 3.1 billion DOGE, indicating confidence in a potential rebound. Whether this accumulation will translate into upward momentum remains to be seen.