Dogecoin Wins Over Major Demand Zone: Path To $0.15 Now Clear?
27 Settembre 2024 - 7:00AM
NEWSBTC
An analyst has pointed out how Dogecoin has reclaimed a major
on-chain demand zone, which could open up the path to higher
levels. Dogecoin May Not Have Much On-Chain Resistance At Upcoming
Levels In a new post on X, analyst Ali Martinez has discussed about
how DOGE has just overcome a major on-chain supply wall. On-chain
supply ‘walls’ refer to price ranges that carry the cost
basis of a significant amount of investors. Below is the chart
from IntoTheBlock shared by the analyst, which shows how the
different Dogecoin price ranges are currently looking in terms of
this. 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
particularly stands out as it has a huge dot attached to it at the
moment. Related Reading: Bitcoin Correlation With Gold Now At
Highest Level Since March More specifically, the range contains the
cost basis of around 62,270 addresses who bought a total of 36.08
billion tokens of the memecoin at levels situated inside it. To any
investor, their cost basis or acquisition level is naturally
special, due to which they can be prone to showing some kind of
reaction when a retest of it takes place. Dogecoin retesting a
range where only a few investors bought wouldn’t produce any
significant reaction, but in the case of a major demand zone, like
the $0.108 to $0.111 range mentioned earlier, holders may make
enough simultaneous moves so as to cause fluctuations in the coin’s
value. As for how exactly traders might react to a retest of their
cost basis comes down to investor psychology. Retests of investors
who were previously in loss can lead to a selling reaction, as
these holders might fear the price will go down again in the future
and thus, could decide to exit at their break-even, to at least get
their investment back in full. Earlier, Dogecoin’s spot price had
performed a retest of the $0.108 to $0.111 range from below, but it
appears the resistance from these sellers wasn’t enough to hold
back the meme coin as it has shot up above it with a sharp jump
during the last 24 hours. From the chart, it’s apparent that unlike
this latest range, DOGE has just surpassed, the levels ahead are
relatively thin in terms of supply. “If DOGE holds this level, it
could confirm a bullish breakout,” notes Martinez. “With no major
supply walls in sight, the path to $0.150 looks clear!” Related
Reading: Bitcoin Could Top At $400,000 Based On This Model, Analyst
Says A potential run to this $0.150 mark from the current Dogecoin
price would mean an increase of more than 31% for the memecoin. It
now remains to be seen if the asset continues its rally in the
coming days and whether it would 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% over the last seven days. Featured image
from Dall-E, IntoTheBlock.com, chart from TradingView.com
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