Dogecoin's Next Resistance at $0.36 as Price Surges 37%

On-chain data suggests that the next major resistance level for Dogecoin could be around $0.36, based on the investor cost basis distribution. Analyst Ali Martinez highlighted significant levels on the UTXO Realized Price Distribution (URPD) chart, which shows the price levels at which a large portion of the Dogecoin supply was last purchased.

The URPD chart indicates that there are no immediate levels near the current Dogecoin price that hold the break-even mark for a significant portion of the supply. The closest notable level is around $0.21, where 7.5% of the DOGE supply was last acquired. For the upward direction, the next significant cost basis center is at $0.36, where approximately 3.8% of all tokens in existence were last purchased.

These levels are crucial because they represent the cost basis for many investors, which can influence their behavior during price retests. If the price retests these levels from above in a bullish market, investors who were previously in profit might view the decline as a buying opportunity. Conversely, those who were in loss might sell their Dogecoin, fearing it could be their last chance to exit at break-even.

Major supply walls below the current Dogecoin price can act as potential support zones, while those above it may serve as resistance areas. Given the current levels at $0.21 and $0.36, these are the points where Dogecoin is most likely to encounter strong support and resistance, respectively.

At the time of writing, Dogecoin is trading around $0.237, marking a more than 37% increase over the last seven days. This upward trend suggests that the cryptocurrency is gaining momentum, and the identified resistance levels could play a significant role in its future price movements.