Dogecoin's $0.18, $0.21 Levels Key to Next Bull Run

An analyst has identified two significant resistance levels for Dogecoin that could potentially trigger the next bull run for the memecoin's price. These levels are based on the UTXO Realized Price Distribution (URPD), an on-chain metric that indicates the amount of supply bought at various price points in Dogecoin's history.

The URPD metric records the price at the time of a coin's last transaction as its cost basis. According to the analyst, the largest supply wall for Dogecoin is around the $0.07 level, where over 20% of all coins in circulation were last transacted. Given that the current DOGE price is far above this level, a significant portion of this supply would be in profit.

When the cryptocurrency's price retests the cost basis of investors who were in profit just before, holders may react by accumulating more if the market mood is bullish. This is because they may believe the same level would be profitable again in the future, making the retest look like a 'dip' opportunity. Conversely, when the retest occurs from the opposite direction, investors might sell, fearing the asset would fall back again, thus providing an opportunity to exit with their entire investment.

Two loss levels for Dogecoin currently stand out due to their size: $0.18 and $0.21. The $0.18 level hosts the acquisition level of around 8% of the supply, while the $0.21 level hosts that of 7%. Given the significant amount of supply present at these levels, they could act as major resistance barriers due to the selling effect. If DOGE can cross these levels, there are no other supply walls as large in sight. According to the analyst, breaking through both could be the catalyst for the next major bull rally.

Dogecoin made an attempt at recovery last week, but the memecoin's price has since returned to its baseline, now trading around $0.17. The trend in the DOGE price over the last 30 days shows a fluctuating pattern, with the current price hovering around the $0.17 mark. The analyst's observations suggest that if Dogecoin can surpass the $0.18 and $0.21 resistance levels, it could pave the way for a significant bull run, as there are no other major supply walls beyond these levels.