Dogecoin (DOGE) Price Drops 9% to $0.17 Amidst Broader Market Correction

Despite a massive 270% increase in active addresses on the network over the past 24 hours, Dogecoin's price has dropped about 9% to $0.17

Dogecoin's price fell 9% on Thursday morning to $0.17 after testing key support levels. The cryptocurrency has seen massive 270% increase in active addresses in the last 24 hours, jumping from 71,750 to 264,000.

Dogecoin price analysis: meme cryptocurrency approaches crucial support

The popular meme cryptocurrency was seen testing crucial support levels as it continues to decline with the broader cryptocurrency market.

According to data from CoinGlass, Dogecoin's trading volume soared 115% to more than $2.01 billion. At the same time, open interest decreased by 12.91% to $1.45 billion, while 24-hour liquidations reached $21 million.

This massive accumulation by large holders comes at a time when Dogecoin wallet addresses have reached an all-time high. The increase in wallet numbers points to growing interest in the meme coin despite the recent price drop.

Dogecoin price analysis: meme cryptocurrency approaches crucial support

Crypto analyst Ali Martinez highlighted Dogecoin's approach to the lower boundary of its current price channel. He previously stated that if bulls manage to hold above the DOGE support levels of $0.16, it could trigger a rally toward much higher prices.

"Dogecoin is nearing a crucial support level at the lower boundary of this channel. Holding above $0.16 could fuel a strong rebound!"

Pseudonymous analyst "TheGift94" outlined potential demand zones where DOGE might stabilize during this selling pressure. In a recent TradingView analysis, the analyst identified three "buying demand zones" critical to the meme coin's price movement.

The first support zone at $0.20 was breached as Dogecoin's price fell by 13% yesterday, closing at $0.1678. Two additional zones at $0.16 and $0.13 are now being monitored as potential turning points for DOGE.

Another analyst, MMBTtrader, shared a more bearish outlook. This analyst suggested Dogecoin could breach all three aforementioned supports and drop to $0.08131, a price level last seen in August.

MMBTtrader noted that the over 53% dump could happen after Dogecoin lost major daily support at $0.185. However, the analyst predicted that the meme coin would eventually pump from the global support at $0.08131 to reclaim $0.40.

Dogecoin experienced four consecutive negative daily candles. The cryptocurrency experienced a 30% correction over the previous week, following the broader market pattern.

Bitcoin recently rebounded slightly after dipping to $80,000 last week, moving the broader crypto market with it. Today's 2% surge has seen Dogecoin show similar momentum, bouncing from $0.1656 yesterday.

Some market watchers maintain a bullish long-term price outlook for Dogecoin despite the current downturn. Various analyses suggest that DOGE still has potential to reach much higher price points before the end of this bull cycle.

Dogecoin is trading at $0.1728 with a market cap of $25 billion as of press time. The cryptocurrency remains one of the largest meme coins by market capitalization despite its recent price decline.