A analyst underlined two important levels of resistance to dogecoin which could potentially open the path to the subsequent bull race for the price of memecoin.
These dogecoin levels are distinguished in terms of chain resistance
In a new post on X, the analyst Ali Martinez discussed the resistance walls in advance for doge based on the distribution of prices made by UTXO (URPD). The URPD is a metric on chain created by the Glassnode analysis company that tells us, in short, the amount of supply that was purchased at various levels that Dogecoin visited in its history.
Coins are said to be “purchased” when they are involved in a blockchain transaction. Therefore, the URPD records the price at the time of the last transaction of any currency as a cost base.
Now, here is the graphic designer shared by the analyst who shows how he is looking at the Dogecoin Urpd at this moment:
As is visible in the above graph, the largest supply wall that Dogecoin has is present around the level of $ 0.07, where over 20% of all the coins in circulation have been translated for the last time. Since the price of the doge is currently exchanged a lot above this level, all this offer would be sitting on a remarkable profit.
In general, when the price of the cryptocurrency sees the cost of investors who had a profit just before, the owners can react by accumulating more if the mood on the market is bullish. This is due to the fact that they could be prone to think that the same level would end up being profitable again in the future, so the test would seem to be an opportunity for “dip”.
In the same way, when the test occurs from the opposite direction, investors can react instead by selling, since they could fear that the resource would go back, so this could be their opportunity to go out at least with the entire investment.
From the graph, it is visible that in terms of dogecoin loss levels, two currently protrude for their size: $ 0.18 and $ 0.21. The former hosts the level of acquisition of about 8% of the offer, while the second of 7%.
Considering the significant quantity of supply present, the levels could act as important resistance barriers due to the sales effect explained above. If Doge can cross these levels, however, there are no other supplies of supply as large in sight. “Crossing both could be the catalyst for the next big Tori gathering,” observes Martinez.
Price di Doge
Dogecoin made an attempt to recover last week, but since then the price of memecoin has returned to the base as it is now exchanged of about $ 0.17.