Dog-themed cryptocurrency Dogecoin (CRYPTO: DOGE) has found itself at a make-or-break juncture that could determine its next major move.

What Happened: According to crypto analyst Ali, the popular dog coin is at a make-or-break level with two potential price scenarios in play.

"Dogecoin DOGE is at a make-or-break level. If $0.16 holds, a rally to $0.57 could follow. If it fails, a drop to $0.06 becomes likely," Ali stated in a tweet.

Ali points out that if Dogecoin can hold the $0.16 support level, it might spark a strong rise to $0.57. However, failing to sustain this level may result in a drop to $0.06, which could concern investors.

At the time of writing, Dogecoin was trading at $0.1575, down 8.52% in the last 24 hours amid an ongoing sell-off on the crypto market. The recent dip has increased pressure on the $0.16 support level, making the next few trading sessions crucial for DOGE’s short-term direction.

In this light, the market will be closely watching for Dogecoin’s return to the $0.16 mark. Amid the current market uncertainty, DOGE’s price action in the coming days could set the tone for its next potential move.

Crypto Market Faces Sell-Off: Bitcoin (CRYPTO: BTC) and other cryptocurrencies were under pressure Thursday as investors considered macroeconomic concerns. This corresponds with a sell-off on the equities market, with the broad market S&P 500 poised for its worst day since September 2022.

Shares of (NASDAQ:COIN) and MicroStrategy (NASDAQ:MCRI) fell more than 7% each.

Dogecoin also fell, reaching an intraday low of $0.155 at press time. The first sign of strength for Dogecoin will be a break and close above $0.16. Dogecoin may then increase to $0.21, which might serve as a significant hurdle. If buyers break over the $0.21 resistance, Dogecoin may rise to $0.24 and then to $0.29.

Sellers are likely to have different plans. They will attempt to defend the moving averages and lower the price below $0.16. If they succeed, Dogecoin might fall to the $0.14 support. A break and closing below $0.14 may bring the DOGE price down to $0.10 or even $0.06.