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Recent price action has seen Dogecoin stuck in a correction path for over a month now, and the meme now finds itself trading just above the $0.3 mark. Particularly, Dogecoin has retraced by about 30% since it reached a recent multi-year peak of $0.48 in early December, and bullish traders are now patiently waiting for the next leg up.
According to technical analysis,Dogecoin’s recent confluence at the $0.3 price level presents an attractive opportunityto load up more of the cryptocurrency before an upward bounce from here. Dogecoin’s $0.3 Support Zone Holds Key Significance
The $0.3 price level has emerged as a critical support zone for the meme coin moving forward, with multiple analyses referencing this price point. According to a technical analysis of Dogecoin’s daily candlestick price action on the TradingView platform, this level aligns with historical support zones that have previously served as reliable demand areas during market downturns. The technical appeal of this zone is more notable due to its correlation with broader market sentiment, as the Bitcoin price is currently hovering near its own significant support level. Related Reading What To Expect After The Bitcoin Price Crash Below $100,000 1 day ago
With this in mind, Dogecoin’s retracement to $0.3 could not only serve as a potential bottom for the current correction but also as a launching padfor the next bullish wave, provided Bitcoin and other market conditions align favorably. Furthermore, it provides traders the opportunity to load up more Dogecoin tokens at a 30% discount and position themselves for maximum gains before the wider crypto market recovers and resumes its upward momentum. Source: TradingView Is A Broader Market Recovery On The Horizon?
As one of the largest cryptocurrencies, Dogecoin is easily influenced by market dynamics, including things like news updates and Bitcoin’s price action. Particularly, Dogecoin’s upward momentum in the last quarter of 2024 had no reason to be derailed if not for Bitcoin’s failure to hold above the psychological $100,000 price level. Related Reading XRP Price Eyes Bullish Flag Breakout That Could Put 50% Gains On The Board 1 day ago
Unsurprisingly, on-chain data shows some Dogecoin whale addresses might already be capitalizing on this discount in anticipation of this market-wide recovery. Whale transactions involving Dogecoin recently surged by over 400%. Furthermore, on-chain datafrom IntoTheBlock shows that Dogecoin’s large transaction volume recently rose to over $60.9 billion in a 24-hour timeframe.
At the time of writing, Dogecoin is trading at $0.3328 and is down by about 1.4% in the past 24 hours. The $0.3 price level remains a pertinent range to keep an eye on, as a successful defense of this level paired with strengthening BTC prices could lay the groundwork for a renewed Dogecoin rally. A prudent approach would beto set stop losses below this level in case of a deeper correction, which could invalidate short-term bullish momentum. DOGE bulls push price higher after crash | Source: DOGEUSDT on Tradingview.com Featured image created with Dall.E, chart from Tradingview.com