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Dogecoin, now the ninth largest cryptocurrency by market capitalization, saw a significant drop on March 3, as it printed a massive red daily candle. The entire crypto market tumbled in response to fears that the Silvergate bank crisis might negatively impact it.
Affected by the bearish sentiment, Dogecoin dipped from highs of $0.08 to intraday lows of $0.0732 on March 3 before buyers came to the rescue. Dogecoin met the support at this level as its price quickly rebounded shortly thereafter, as evidenced by three green four-hourly candles.
According to IntoTheBlock data posted by crypto analyst Ali Martinez, the significance of the $0.073 low is explained this way:
Per the screenshot posted, 44,100 addresses bought 34.38 billion SHIB between the range of $0.0738 and $0.0765, with an average price of $0.075. This range as the most significant support for Dogecoin. The next support after it is in the $0.071 to $0.0738 range.
On the other hand, the most significant resistance area for Dogecoin is between the $0.0852 and $0.0857 range, with an average price of $0.086. This is where 91,840 addresses are holding 13.11 billion DOGE.
At the time of writing, Dogecoin was down 4.76% in the last 24 hours at $0.076. Its 24-hour trading volume is up 130% as traders jumped into the volatility to capture gains.