An analyst pointed out how Dogecoin has regained an important demand zone on the network, which could pave the way to higher levels.
Dogecoin may not have much on-chain resistance at the next levels
In a new publish on X, analyst Ali Martinez discussed how DOGE has just overcome a major supply chain barrier. Supply ‘walls’ in the chain refer to price ranges that carry the cost basis of a significant number of investors. Below is the IntoTheBlock chart shared by the analyst, which shows how the different Dogecoin price ranges currently stand in terms of this.
On the chart, the size of the dot corresponds to the amount of DOGE that network addresses last purchased between corresponding price levels. The $0.108 to $0.111 range particularly stands out because it has a huge dot attached to it at the moment.
More specifically, the range contains the cost base of around 62,270 addresses that purchased a total of 36.08 billion memecoin tokens at tiers located within it. For any investor, their cost base or acquisition level is naturally special, so they may be prone to some type of reaction when a retest occurs.
Dogecoin retesting a range where only a few investors bought would not produce any significant reaction, but in the case of a high demand zone, such as the $0.108 to $0.111 range mentioned earlier, holders may make enough simultaneous moves to cause fluctuations in the value of the currency.
As for how exactly traders might react to a retest of their cost basis, it depends on the psychology of the investor. Retesting investors who were previously at a loss could lead to a selling reaction, as these holders may fear that the price will fall again in the future and therefore may decide to exit at their break-even point, to at least fully recover their investment.
Previously, Dogecoin spot price had retested the $0.108 to $0.111 range below, but it appeared that the resistance of these sellers was not enough to contain the meme coin as it soared above it with a sharp jump during the last 24 hours.
From the chart, it is evident that unlike this last range DOGE has just broken through, the levels ahead are relatively weak in terms of supply. “If DOGE maintains this level, it could confirm a bullish breakout,” notes Martinez. “With no major supply barriers in sight, the path to $0.150 appears clear!”
A possible run to this $0.150 mark relative to Dogecoin’s current price would mean an increase of over 31% for the memecoin. It remains to be seen whether the asset will continue its rise in the coming days and whether it will be able to reach this level or not.
DOGE Price
At the time of writing, Dogecoin is floating around $0.114, up more than 9% in the last seven days.