An analyst has pointed out how Dogecoin has regained a key demand zone in the chain, which could open the way to higher levels.
Dogecoin may not have much resistance at the upcoming levels
In a new after on X, analyst Ali Martinez discussed how DOGE just overcame a major supply wall in the chain. On-chain supply “walls” refer to price points that support the cost base of a significant number of investors. Below is the chart from IntoTheBlock, shared by the analyst, showing how the different Dogecoin price ranges currently look in terms.
In the graph, the size of the dot corresponds to the amount of DOGE that the addresses on the network last purchased between the corresponding price levels. The $0.108 to $0.111 range is especially notable because it currently has a huge point attached to it.
More specifically, the range includes the cost base of approximately 62,270 addresses that purchased a total of 36.08 billion tokens of the memecoin at levels within it. For each investor, their cost base or acquisition level is obviously particular, which may predispose them to some kind of reaction when retested.
Retesting a range where only a few investors bought by Dogecoin would not trigger any significant reaction, but in the case of a large demand zone, such as the aforementioned range from $0.108 to $0.111, holders can make enough simultaneous moves to avoid fluctuations in the cause price. coin value.
How exactly traders might respond to a retest of their cost basis comes down to investor psychology. Retesting by investors who previously suffered losses could lead to a selling reaction, as these holders might fear that the price will fall again in the future and thus might decide to exit at break-even level, at least to preserve their investment to get back. full.
Previously, Dogecoin’s spot price had retested the range of $0.108 to $0.111 from below, but it appears that the resistance from these sellers was not enough to hold the meme coin back as it has been coming off sharply lately jumped over the top. 24 hours.
The chart shows that unlike this last range, which DOGE has just surpassed, the coming levels are relatively thin in terms of supply. “If DOGE holds at this level, it could confirm a bullish breakout,” Martinez notes. “With no major supply walls in sight, the path to $0.150 seems clear!”
A potential run to this $0.150 mark against the current Dogecoin price would mean an increase of more than 31% for the memecoin. It now remains to be seen whether the asset will continue its rally in the coming days and whether it will be able to reach this level or not.
DOGE Award
At the time of writing, Dogecoin is hovering around $0.114, up over 9% in the past seven days.
