TLDR
- Dogecoin has reclaimed a major on-chain demand zone between $0.108 and $0.111
- This zone contains the cost basis for 62,270 addresses holding 36.08 billion DOGE
- DOGE has broken above this zone with a sharp jump in the last 24 hours
- There appear to be few major supply walls ahead for DOGE
- An analyst suggests the path to $0.150 (31% increase) may now be clear
Dogecoin, the popular meme-inspired cryptocurrency, has recently overcome a significant price hurdle, potentially paving the way for further gains according to some analysts.
Over the past 24 hours, DOGE has seen a sharp increase in value, breaking through a key level that had previously acted as resistance.
Data from blockchain analytics firm IntoTheBlock shows that Dogecoin recently surpassed a price range between $0.108 and $0.111.
This particular zone is noteworthy because it represents the average purchase price for a large number of DOGE holders. Specifically, about 62,270 addresses collectively hold approximately 36.08 billion DOGE tokens bought within this price range.
In cryptocurrency markets, such levels often act as important psychological barriers. When a coin’s price approaches the break-even point for a significant number of holders, it can lead to increased selling pressure as some investors look to exit their positions at cost.
The fact that Dogecoin was able to push through this level suggests there may be strong buying interest supporting the price.
Crypto analyst Ali Martinez highlighted this development in a recent social media post. Martinez noted that with DOGE now trading above this key level, it could signal a bullish breakout.
#Dogecoin has surged past the $0.111 resistance, where 62,270 addresses hold over 36 billion $DOGE. If #DOGE holds this level, it could confirm a bullish breakout. With no major supply walls in sight, the path to $0.150 looks clear! pic.twitter.com/4L0zI4s72z
— Ali (@ali_charts) September 26, 2024
Perhaps more importantly, the analyst pointed out that there appear to be few major supply walls ahead based on the on-chain data.
Supply walls refer to price ranges where large amounts of a cryptocurrency were previously purchased. These areas often act as resistance when prices approach them again.
The relative lack of such walls above current prices could mean Dogecoin faces less overhead resistance as it attempts to move higher.
Given these factors, Martinez suggested that if Dogecoin can maintain its position above the recently broken level, it may have a relatively clear path to reach prices around $0.150. This would represent an increase of over 31% from current levels.
It’s important to note that while on-chain analysis can provide useful insights, cryptocurrency markets are highly volatile and influenced by many factors.
The price of Dogecoin, like all digital assets, can be affected by broader market sentiment, regulatory news, technological developments, and other unpredictable events.
As of this writing, Dogecoin is trading at approximately $0.114, representing an increase of more than 9% over the past week.
The recent price action has brought renewed attention to the meme coin, which has maintained a dedicated following since its creation in 2013 as a lighthearted alternative to Bitcoin.
Dogecoin’s recent performance comes amid a period of increased activity in the broader cryptocurrency market. Bitcoin, the largest cryptocurrency by market capitalization, has also seen significant gains in recent weeks, which often has a ripple effect on the prices of other digital assets.
