Is Dogecoin’s 30% Decline A Chance To Buy On Discount? Here Is the Pertinent Level To Watch
Recent price action has kept Dogecoin stuck in a correction path for over a month, and the meme now finds itself trading just above the $0.3 mark. In particular, Dogecoin has retraced approximately 30% since hitting multi-year highs of $0.48 in early December, with bullish traders now patiently awaiting the next move higher.
according to technical analysis, Dogecoin recently consolidated at the $0.3 price level offers an attractive opportunity Load up on more crypto before rallying higher from here.
Dogecoin’s $0.3 support zone holds significance
The $0.3 price level has emerged as a key support area for the meme token moving forward, with multiple analyzes referencing this price point. According to technical analysis of Dogecoin’s daily candlestick price action on the TradingView platform, this level is consistent with historical support areas that have previously served as reliable demand areas during market downturns. With Bitcoin price currently hovering near a significant support level of its own, the technical appeal of this area is even more compelling as it correlates with broader market sentiment.
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With this in mind, a retracement of Dogecoin to $0.3 serves not only as a potential bottom for the current correction, but also as a potential bottom for the current correction. Can also be used as a launch pad The next bullish wave will come if Bitcoin and other market conditions are favorable. Additionally, it offers traders the opportunity to purchase more Dogecoin tokens at a 30% discount and maximize gains for themselves before the broader crypto market recovers and resumes its upward momentum.
Is a broader market recovery on the horizon?
As one of the largest cryptocurrencies, Dogecoin is easily affected by market dynamics, including news updates, etc. and Bitcoin price trends. In particular, if not for Bitcoin’s failure to hold the psychological price level of $100,000, Dogecoin’s upward momentum in the final quarter of 2024 would have had no reason to be derailed.
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Unsurprisingly, on-chain data shows that some Dogecoin whale addresses may already be taking advantage of this discount in anticipation of a recovery across the market. Whale trades involving Dogecoin Recently surged over 400%. also, Data on the chain Data from IntoTheBlock shows that Dogecoin’s massive trading volume recently rose to over $60.9 billion in 24 hours.
As of this writing, Dogecoin is trading at $0.3328, down around 1.4% in the past 24 hours. The $0.3 price level remains a relevant range to watch, as a successful hold there, combined with stronger BTC prices, could set the stage for a new rally in Dogecoin. one It would be prudent to Place a stop loss below this level in case a further correction occurs, which could invalidate the short-term bullish momentum.
Featured image created using Dall.E, chart from Tradingview.com
