The Dogecoin price has corrected over 17% this week, testing the critical $0.20 support level amid broader crypto market uncertainties.
By Bhushan Akolkar
Edited by Marco T. Lanz
Updated
2 mins read
The crypto market crash this week has sent altcoins plummeting with Dogecoin price correcting over 17% on the weekly chart testing the crucial support levels at $0.20. Despite the hopes of a Dogecoin ETF coming this year, the investor sentiment hasn’t yet picked up quite well as investors take a cautious approach.
Popular crypto analyst Ali Martinez recently reported that the DOGE DOGE $0.17 24h volatility: 0.2% Market cap: $24.62 B Vol. 24h: $1.34 B open interest has tanked by 67% over the past three month hinting at waning investor sentiment. The metric, which measures the total value of outstanding derivative contracts, has fallen from an all-time high of $4.07 billion to just $1.33 billion as of today.
Source: Ali Martinez
This sharp decline in open interest suggests reduced trading activity and speculative interest in Dogecoin. Additionally, other on-chain metrics also suggest declining interest in DOGE $0.17 24h volatility: 0.2% Market cap: $24.62 B Vol. 24h: $1.34 B as the price fails to gather enough ammo for further rally.
Furthermore, analyst Ali Martinez stated that the Dogecoin network has witnessed a significant contraction in trading activity. On-chain data shows that the new address creation has tanked from 1.29 million in November to just 30,815 as of today.
Source: Ali Martinez
This sharp decline highlights a notable slowdown in network growth and user engagement, raising concerns about the cryptocurrency’s current adoption and activity levels. As of press time, the Dogecoin price is trading 1% down at $0.2087, with daily trading volumes staying above $2.0 billion.
Crypto analyst Trader Tardigrade has shared some crucial updates noting that Dogecoin price has entered a critical “order block zone”. This zone represents an area with a high concentration of limit orders awaiting execution, which could act as a significant support level for the cryptocurrency.
Source: Trader Tardigrade
The analyst suggests that once these limit orders are filled, Dogecoin is likely to regain upward momentum. This development has sparked optimism among traders anticipating a potential price recovery for the popular meme coin. If Dogecoin sustains its support near the $0.20 level, it could stage a rebound targeting $0.30998, $0.37154, and $0.45918 in the weeks ahead.
The recent Dogecoin price action has also been the result of macro uncertainties overshadowing the broader crypto market. On Wednesday, President Donald Trump said that he would impose 25% tariffs on Europe instantly triggering sharp correction across global markets.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
