DOGE Life or Death: The Battle to Defend the $0.3 Support
Dogecoin (DOGE), as the leading meme coin in the cryptocurrency sector, particularly attracts the attention of crypto enthusiasts in the current turbulent cryptocurrency market.
On Monday, the overall cryptocurrency market rebounded, but Elon Musk's naming of the advisory office as the new Presidential Efficiency Department (DOGE), a move laden with implications, did not drive the price of Dogecoin up.
According to Santiment analysis, the market sentiment for Dogecoin improved on Monday. Since the market cap peaked a month ago, Dogecoin's market cap has fallen by 28%, and the market sentiment has been at an extremely low level for nearly a year. This indicates that once the cryptocurrency market warms up, contrarian investing in Dogecoin may yield substantial returns.
Previously, Peter Mathers from TradingLounge predicted through Elliott Wave patterns that Dogecoin is expected to rise to $0.48, and even challenge $0.61.
Market data shows that in the past 48 hours, Dogecoin worth $54 million has flowed out of exchanges, indicating that long-term holders are accumulating or hoarding coins at low prices before Trump's inauguration.
In January, cryptocurrency whales have been unusually active in the Dogecoin market. From January 9 to 10, whales purchased 470 million Dogecoins within 48 hours, and earlier this month, they splurged on 1 billion Dogecoins within just 24 hours. The continued entry of large investors indicates their confidence in Dogecoin.
The derivatives market is also sending positive signals. At the beginning of the month, more than 81% of the open contracts for Binance Dogecoin futures were long positions.
Currently, the price of Dogecoin has reached a critical point, just hitting the strong support level of $0.30. The last time Dogecoin dropped to this price level, it immediately rebounded over 25%, rising to $0.40. Technical analysis indicates that if it holds at $0.30 this time, Dogecoin is likely to continue upward; if it breaks down, it may fall 25% to $0.225.
At present, the trading price of Dogecoin is around $0.318, having dropped over 6.5% in the past 24 hours, but trading volume surged by 60%, highlighting the enthusiasm of investors and traders amidst market uncertainty.