Dogecoin (DOGE) Hovers Above Crucial Support Level as the Market Shows Weakness: IntoTheBlock

Dog-themed cryptocurrency Dogecoin (DOGE) might be approaching a crucial moment as it hovers above a significant on-chain support level.

Crucial on-chain support might be setting the stage for the next move in the Dog-themed cryptocurrency Dogecoin (DOGE) market, as the cryptocurrency hovers above a key price level, according to data from IntoTheBlock. This support level is especially crucial as the broader market conditions show potential signs of weakness.

The market has seen whipsaw price movements since the start of the week as investors reacted to key inflation data and interest rate decisions that signaled the U.S. Federal Reserve's upcoming pivot. Dogecoin was not spared from the volatile price action, oscillating between $0.133 and $0.15 so far this week.

Historically, 45 billion DOGE was acquired at an average price of $0.115, creating a strong demand zone that has provided significant support in the past, according to IntoTheBlock. This level is crucial because it represents a large volume of Dogecoin held by investors, who are likely to defend their positions if the price approaches this threshold. In the event of a market downturn, this support level could be key in preventing further declines.

DOGE was trading down 0.71% over the last 24 hours at $0.1429, at the time of writing. As Dogecoin awaits its next major move, on-chain data highlights the $0.115 price point where a significant amount of Dogecoin has changed hands. This suggests that many traders might be viewing this price as a good entry point, providing a cushion against price drops. The strength of this support will be tested if selling pressure increases, making it a crucial area to watch.

However, it is not all smooth sailing for DOGE. On the upside, there is a potential hurdle at the $0.16 price level. At this point, 20 billion DOGE is currently held at a loss. Investors who bought in at this level may look to exit their positions as the price approaches, which could create selling pressure that caps further gains.

News source：https://www.kdj.com/cryptocurrencies-news/articles/dogecoin-doge-hovers-crucial-support-level-market-weakness-intotheblock.html

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