Dogecoin Faces 8.94% Supply Wall at $0.18 Resistance

An analyst has identified three key resistance levels for Dogecoin that could potentially hinder its price movement, based on on-chain data. These levels are significant because they correspond to major supply walls on the Dogecoin UTXO Realized Price Distribution (URPD). The URPD is an on-chain indicator that provides insights into the total amount of Dogecoin's supply that was last purchased at various price levels throughout its history.

According to the analyst Ali Martinez, the closest resistance level to the current Dogecoin spot price is $0.18. At this level, approximately 8.94% of the asset’s supply was last purchased. Since this level is above the current spot price, all holders at this price point are currently in a loss. These investors typically look forward to retests of their break-even mark to recover their investments, which can sometimes lead to significant selling pressure and resistance.

In addition to the $0.18 level, Martinez has also flagged two other resistance levels: $0.21, where 7.24% of the supply was last purchased, and $0.36, where 3.82% of the supply was last purchased. Notably, there are no significant supply walls between the $0.21 and $0.36 levels, suggesting that if Dogecoin can break through the $0.21 level, it may have an easier time climbing to $0.36.

If Dogecoin faces rejection at these resistance levels, it may find support at the in-profit supply zones. Holders at these levels might react to declines by buying more, viewing the drawdown as a dip-buying opportunity. The only level below the current Dogecoin spot price that stands out in terms of supply is $0.07, which hosts the acquisition mark of 20.03% of the memecoin’s supply. This level is massive in size and could serve as a strong support center.

At the time of writing, Dogecoin is trading around $0.168, up 1.6% in the last seven days. The trend in the DOGE price over the last five days shows a slight upward movement, but the identified resistance levels could pose challenges to further price increases.