Dogecoin: Key Demand Wall Appears Despite Market Slump

Dogecoin Finds Support Amid Market Slump

Cover image courtesy of U.Today

In the midst of the current market downturn, Dogecoin (DOGE) has identified a crucial demand zone that could provide essential support for the cryptocurrency.

Demand Zones Emerge

Data from IntoTheBlock reveals that Dogecoin faces strong demand zones near its current trading levels, highlighting areas where significant buying activity has occurred.

Dogecoin has established a demand zone within the price range of $0.081 and $0.099. Within this range, approximately 11.36 billion DOGE have been acquired by 1.14 million addresses. This buying activity suggests that many investors view this range as an attractive entry point, providing a potential support level for DOGE.

Another demand zone between $0.07 and $0.081 further reinforces this support. In this range, about 23.72 billion DOGE are held by 1.16 million addresses. The concentration of holdings in this area underscores its significance as a key demand zone, indicating strong investor interest and confidence at these price levels.

Significance of Demand Zones

The identification of these demand zones is particularly important because it demonstrates where the majority of trading activity and accumulation of Dogecoin has taken place.

Market Outlook

The broader cryptocurrency market has been experiencing volatility, with various digital assets facing downward pressure. Dogecoin has not been an exception, reaching lows of $0.091 in a three-day price slump.

At the time of writing, Dogecoin was trading down 6.29% in the last 24 hours to $0.101, while it is down 19% weekly. Dogecoin's key demand wall, as highlighted by IntoTheBlock data, showcases significant buying activity in the $0.07 to $0.099 price range.

As the crypto market continues to face uncertainty, this demand zone stands out as a crucial area to monitor. The concentration of holdings around this level could act as a buffer against further price declines, as many investors may be reluctant to sell at a loss, thus reducing sell pressure. In the event of a price rebound, Dogecoin faces a key technical hurdle near $0.129, which coincides with its daily SMA 200.