The post Dogecoin Wins Over Major Demand Zone: Path To $0.15 Now Clear? appeared on BitcoinEthereumNews.com.

An analyst has pointed out how Dogecoin has reclaimed a major on-chain demand zone, which could open up the path to higher levels. Dogecoin May Not Have Much On-Chain Resistance At Upcoming Levels In a new post on X, analyst Ali Martinez has discussed about how DOGE has just overcome a major on-chain supply wall. On-chain supply ‘walls’ refer to price ranges that carry the cost basis of a significant amount of investors. Below is the chart from IntoTheBlock shared by the analyst, which shows how the different Dogecoin price ranges are currently looking in terms of this. In the graph, the size of the dot corresponds to the amount of DOGE that the addresses on the network last purchased between the corresponding price levels. The $0.108 to $0.111 range particularly stands out as it has a huge dot attached to it at the moment. More specifically, the range contains the cost basis of around 62,270 addresses who bought a total of 36.08 billion tokens of the memecoin at levels situated inside it. To any investor, their cost basis or acquisition level is naturally special, due to which they can be prone to showing some kind of reaction when a retest of it takes place. Dogecoin retesting a range where only a few investors bought wouldn’t produce any significant reaction, but in the case of a major demand zone, like the $0.108 to $0.111 range mentioned earlier, holders may make enough simultaneous moves so as to cause fluctuations in the coin’s value. As for how exactly traders might react to a retest of their cost basis comes down to investor psychology. Retests of investors who were previously in loss can lead to a selling reaction, as these holders might fear the price will go down again in the future and thus,…

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Filed under: News - @ September 27, 2024 5:09 am