According to U.Today, Dogecoin, currently the eighth largest cryptocurrency by market cap, has recently identified a significant support level, marked by a substantial volume of 13.53 billion DOGE. This level is where a large number of Dogecoin addresses hold 13.53 billion DOGE. Data from IntoTheBlock reveals that these Dogecoins were purchased in the range of $0.154 and $0.1673 by 225,990 addresses at an average price of $0.1617.
This crucial support level, highlighted by on-chain data, is near the key daily Simple Moving Average (SMA) 50 at $0.154. Recent daily charts show a struggle between bulls and bears above this level. For the first time since mid-April, Dogecoin managed to rise above the daily SMA 50 that had previously limited its price, breaking through it. Despite attempts by bears to push the Dogecoin price below this key level twice since then, the bulls resisted, indicating that the dips were being bought.
After a steady decline during the week, Dogecoin is nearing the critical daily SMA 50 level. Market analysts are closely monitoring Dogecoin's price, as a breach below this key level could trigger further declines and prolong Dogecoin's consolidation phase. Historically, critical support levels have acted as launchpads for major price gains, driven by renewed investor confidence and buying interest. For Dogecoin, the daily SMA 50 served as a catalyst for the price surge in late February to March and in the latter part of 2023, notably from October to December.
If Dogecoin manages to stay above this critical level, it could indicate the beginning of a new upward trend. If this is backed by volume increases, there could be enough buying pressure to push the price upwards, challenging higher resistance levels. At the time of writing, Dogecoin was down 0.80% in the last 24 hours to $0.16.