As a seasoned crypto investor with a knack for finding hidden gems and a portfolio brimming with digital assets, I find myself intrigued by the recent analysis of Dogecoin by Ali Martinez. The meme coin’s reclamation of the $0.108 to $0.111 major on-chain demand zone could indeed be a bullish sign for DOGE enthusiasts like me.
An expert analyst notes that Dogecoin has regained a significant area where demand is typically high, potentially paving the way for further growth.
Dogecoin May Not Have Much On-Chain Resistance At Upcoming Levels
As a researcher delving into the dynamic world of cryptocurrencies, I recently came across an intriguing post by analyst Ali Martinez on platform X. In his analysis, he highlights that Dogecoin (DOGE) has successfully surpassed a substantial on-chain supply barrier. To clarify, these on-chain ‘barriers’ or ‘walls’ represent price ranges where the cost basis of a considerable number of investors is concentrated.
On this graph, the size of each dot represents the recent DOGE purchase amount for the associated network addresses within their respective price ranges. Notably, the price range of $0.108 to $0.111 is currently highlighted by an exceptionally large dot.
In simpler terms, this range holds the purchase price for approximately 62,270 different investors who acquired around 36.08 billion units of the memecoin. The cost basis or price at which they bought these tokens is significant to each investor, causing them to potentially respond when a retest of that price occurs.
If Dogecoin retests a limited buying area, it likely won’t trigger much response. However, should it encounter a substantial demand zone—such as the $0.108 to $0.111 range—the coordinated actions of multiple holders could potentially lead to fluctuations in the coin’s value.
The way traders respond when their cost basis is retested largely depends on investor psychology. For those who had earlier losses, a retest might trigger a selling response. These investors may be worried that the price could drop again and so they might choose to sell at their break-even point, in order to recoup their initial investment completely.
Previously, Dogecoin’s price attempted to rebound within the $0.108 to $0.111 range, but the sellers’ resistance seemed insufficient to halt its progress. Instead, the meme coin has surged past this level with a sudden spike in the last 24 hours.
Observing the graph as an analyst, it seems that compared to the recent price range, Dogecoin (DOGE) has managed to surpass the upcoming levels. Notably, these areas appear relatively sparse regarding available supply. As such, a potential bullish breakout could be indicated if DOGE maintains this level. Given the absence of significant barriers ahead, a journey towards $0.150 appears promising!
If Dogecoin were to rise to $0.150 from its current price, that would represent a significant jump of over 31% for the meme currency. It remains to be determined if the asset will continue its upward trend in the near future and whether it can actually reach this price point or not.
DOGE Price
Currently, Dogecoin stands at approximately $0.114, marking an increase of over 9% in the past week.
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2024-09-27 08:10