Dogecoin Resistance Walls Ahead: Analyst Identifies 3 Key Levels

One top analyst spotted three important resistance levels for Dogecoin (DOGE) that might influence the memecoin's short-term path, based on new on-chain data.

Dogecoin URPD Highlights Key Supply Clusters

In his latest X (previously Twitter) post, Ali Martinez pointed out levels at which Dogecoin can expect resistance using the UTXO Realized Price Distribution (URPD)—an on-chain indicator from Glassnode that plots where DOGE investors last bought their coins.

These "walls of supply" are groups of investors who bought Dogecoin at certain price levels. As the spot price nears these ranges, most of these owners will sell to break even, putting pressure downward.

Three Significant Resistance Levels for DOG

Based on Martinez, Dogecoin's most proximal level of resistance is $0.18, where roughly 8.94% of the circulating supply was most recently bought. Since this price is higher than the current price, these investors are in the red at present—increasing the chances they will sell once the price returns to their cost basis.

"Investors tend to sell at break-even to limit further losses," Martinez said, "which is why such levels tend to serve as solid resistance."

The analyst also pointed to two other resistance areas:

$0.21 – Accrues 7.24% of DOGE's supply

$0.36 – Accounts for 3.82% of the supply

Between $0.21 and $0.36, the URPD has very little resistance, suggesting that if Dogecoin manages to break above $0.21, there could be less resistance on its way to higher price targets.

What If DOGE Does Get Rejected?

If Dogecoin does not break through these resistance levels, it might need to depend on support from "in-profit" owners—individuals who bought DOGE at lower levels and might seek to buy in on dips.

The strongest support level, based on URPD figures, is at $0.07, where an enormous 20.03% of the total supply was purchased. This level can serve as a strong demand zone if the market sees a pullback.

Dogecoin Price Action

As of writing, Dogecoin trades around $0.168, with a 1.6% increase in the last 7 days.

With important resistance levels threatening at $0.18, $0.21, and $0.36, buyers and sellers alike will be watching intently for breakout or rejection patterns. A successful break above $0.21 could set the stage for a more serious rally to $0.36.

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