According to market intelligence platform IntoTheBlock, certain conditions must be met for Dogecoin to persist in its upward trend and achieve new price peaks.
Dogecoin Has Notable On-Chain Resistance Near $0.20
In their latest update on X, IntoTheBlock explores the current surge in DOGE‘s price and lays out the conditions required for the meme coin to reach a new peak this year.
Based on data from the analytics company, for Dogecoin to advance significantly, it needs to surpass the point where there’s strong resistance according to on-chain analysis. In the context of on-chain study, a level’s capacity to obstruct or support is determined by the number of coins last purchased at that price.
Here’s a simple way to rephrase that: The following chart illustrates how much this investor has paid on average for Dogecoin, based on its current market price in various price ranges.
With this graph, each dot’s size signifies the quantity of coins obtained in the given price range. Among the shown price levels, those close to $0.20 have supported the purchase of the greatest number of tokens.
Approximately 32,000 investors purchased around 3.78 billion DOGE coins when the price was at this level. However, since this price exceeds the current market value of the asset, each of these investors would currently be in a losing position.
In simpler terms, the cost basis is an important benchmark for investors. When an asset’s price touches this level again, investors who are currently experiencing losses might feel inclined to sell.
Investors holding such cryptocurrencies might be concerned about another price drop, causing them to consider selling at the point of breaking even. This decision could seem advantageous since it would protect them from potential losses that may occur in the near term.
If just a handful of investors are affected, their market reactions won’t significantly impact Dogecoin’s price. But if many investors display similar reactions, Dogecoin’s value could noticeably change.
The more coins stored at a specific on-chain level, the greater its role as either resistance or support. A larger coin hoard could result in stronger reactions when the level is challenged again.
With many investors having purchased Dogecoin at the $0.20 mark, this level could serve as significant resistance if and when the cryptocurrency attempts to rebound again. According to IntoTheBlock, for Dogecoin to sustain its recent gains, it must surmount this hurdle decisively.
DOGE Price
Over the past few days, Dogecoin has gone through a decline in value, resulting in a current price of around $0.188.
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2024-04-11 08:12