Dogecoin has dropped around 30% from its multi-year high of $0.48 in early December. It is currently trading just above $0.3. This has caught the attention of traders who see it as a buy-on-the-dip opportunity.
The $0.3 level is viewed as a significant support zone for Dogecoin, according to technical analysis from TradingView. History suggests that this price could serve as a solid demand area where Dogecoin has previously rebounded during market downturns.
Factors such as Bitcoin's price action also impact Dogecoin's movement. Bitcoin’s inability to hold above $100,000 affected Dogecoin's momentum. However, if Bitcoin stabilizes, it could provide a favorable environment for Dogecoin to rally. On-chain data highlights increased whale activity, with Dogecoin transactions surging by over 400% recently.
At present, Dogecoin is trading at $0.3328. Traders are advised to watch the $0.3 level closely and potentially set stop losses below it to protect against deeper corrections. This ensures a balanced approach amidst potential market volatility.
