As a seasoned crypto investor with a keen interest in Dogecoin (DOGE), I’ve witnessed the recent 11% price decline over the past week, which has left many DOGE investors feeling uneasy. However, based on the latest on-chain analysis by market intelligence platform IntoTheBlock, there might be some reasons for optimism.
As a Dogecoin investor, I’ve seen a significant drop of around 11% in the past week. However, I believe this downward trend might come to a halt soon. This is because Dogecoin is currently hovering above a crucial on-chain support level.
Dogecoin Is Now Just Above A Major On-Chain Demand Zone
Based on information from the market intelligence tool IntoTheBlock, the value of Dogecoin (DOGE) presently exceeds an area with substantial buying interest among investors as indicated by on-chain data. In the context of on-chain evaluation, “buying zones” denote price levels where numerous investors typically acquire coins.
The cost basis for each address in these zones is established using blockchain data, representing the average price at which they receive deposits. The following chart illustrates how Dogecoin prices nearby the current one correlate with the number of addresses that have a similar cost basis.
In the given graph, each dot represents a group of Dogecoin addresses based on the timeframe when they obtained their coins. The size of the dots signifies the number of addresses falling under that particular price range. At present, it seems that the price range between $0.096 and $0.139 holds the most addresses according to this metric.
Approximately 409,330 Doge addresses hold a combined total of 45 billion DOGE within this specific price range. The significance of this or any other price range lies in the concentration of supply and demand for Dogecoin at those levels. This information can provide insights into market trends, potential support and resistance levels, and overall market sentiment towards Dogecoin.
Investors generally consider the cost basis significant for their cryptocurrency holdings. As a result, they may exhibit responsive behavior when the market price approaches this level.
As a researcher studying market trends, I would interpret a small number of investors exhibiting a particular reaction as insignificant for the larger market. However, if a substantial number of investors reveal similar cost bases within a narrow range, a price retest could potentially lead to a significant market reaction.
In simpler terms, the area surrounding the average price of $0.115 saw numerous transactions taking place, making it a popular spot for investors to buy their memecoin shares. A revisit to this price level could carry substantial importance for the memecoin’s market behavior.
Investors who purchased Dogecoin at the earlier lower prices are currently enjoying profits since the coin’s price has surpassed that range. Historically, these support levels beneath the price have been significant, often halting or reversing DOGE‘s downward trend.
As a successful crypto investor, I’ve observed that my emotions often influence my investment decisions. Previously profitable holders might hold onto this belief that the price will rise once more due to their past experiences. Consequently, they may choose to purchase even more of the asset in anticipation of further gains.
From a different perspective, investors who are currently in the red before the retest have the ability to strengthen DOGE‘s resistance as they sell in apprehension that the price may drop once more. According to IntoTheBlock, there is potential resistance for DOGE around the $0.16 mark, where approximately 20 billion DOGE coins are currently being held at a loss.
As a crypto investor, I’m keeping an eye on the potential support level of this memecoin. If its price falls significantly and approaches this on-chain demand zone, it could potentially halt the decline. However, it’s important to note that this is not guaranteed and the outcome remains uncertain.
DOGE Price
Over the last week, Dogecoin investors have experienced rough times with the cryptocurrency’s value taking a hit and falling approximately 11%. As a result, DOGE is currently being traded at roughly $0.142.
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2024-06-14 22:16