Dog-themed cryptocurrency Dogecoin (DOGE) could be approaching a pivotal moment as it sits above a significant on-chain support level, according to data from IntoTheBlock. This support level is crucial for the cryptocurrency, especially as market conditions show potential signs of weakness.
Dog-themed cryptocurrency Dogecoin (DOGE) could be approaching a pivotal moment as it sits above a significant on-chain support level, according to data from IntoTheBlock. This support level is crucial for the cryptocurrency, especially as market conditions show potential signs of weakness.
The market has seen sharp price movements since the start of the week as investors evaluated key inflation data and interest rate decisions that hinted at the future direction of the US Federal Reserve. Dogecoin was not immune to the dismal price movement, fluctuating between $0.133 and $0.15 so far this week.
According In the blockHistorically, 45 billion DOGE were purchased at an average price of $0.115, creating a strong demand zone that has provided substantial support in the past.
This level is critical because it represents a large volume of Dogecoin held by investors, who will likely defend their positions if the price approaches this threshold. If the market experiences a slowdown, this support level could be key to avoiding further declines.
Tomiwabold OlajideAt the time of writing, DOGE was down 0.71% in the last 24 hours to $0.1429. As Dogecoin awaits its next big move, on-chain data highlights the importance of the $0.115 price, where a significant amount of Dogecoin has changed hands. This suggests that many traders could view this price as a good entry point, providing a cushion against price declines. The strength of this support level will be tested if selling pressure increases, making it a crucial area to watch.
However, not everything is easy for DOGE. On the upside, there is an imminent challenge at the $0.16 mark. Here, losses of 20 billion DOGE are currently maintained. Investors who bought at this level may try to exit their positions as the price approaches, which could create selling pressure that could limit future gains.
That said, Dogecoin could be on the verge of a crucial price test: will the 45 billion DOGE support level hold, providing a springboard for future gains? Or will the resistance of the 20 billion prove too strong and lead to consolidation or even a recession? The outcome of these scenarios could shape the DOGE price trajectory in the short term.
