Dogecoin (DOGE) currently trades at a pivotal price territory, with significant barriers on both sides, as it faces a 28 billion DOGE support wall at $0.73 and a 26 billion DOGE resistance wall at $0.76.
Ali Martinez, a prominent market analyst, highlighted DOGE current position in a recent post on X. According to the analyst, the fate of Dogecoin depends on whether it can break above or below these key levels.
He pointed out that Dogecoin is between two important supply walls. These supply walls are areas where a large number of investors have bought their coins. They can either serve as resistance points, opposing a breakout, or as support points, defending against further drops.
Notably, the lower supply wall for Dogecoin ranges from the $0.072 price to $0.073. Data from IntoTheBlock shows that nearly 200,000 addresses purchased 28.6 billion DOGE tokens at this price range. Should DOGE drop to this price level, the lower supply wall could serve as support.
The upper supply wall ranges from $0.074 to $0.076. At this price, data suggests that 124,000 addresses hold 26.95 billion DOGE. As a result, should Dogecoin rise to this price point, these investors could try to sell off their assets at breakeven, creating resistance.
Interestingly, Dogecoin has remained between these two structures, unable to break above the $0.076 price territory but hedging against any drops to the $0.071 territory. The asset soared to $0.0765 on Nov. 5 but faced immense resistance that dropped it to $0.0715 the next day.
Dogecoin Has a Higher Chance of an Upward Break
Martinez noted that the lower supply wall is stronger than the upper one, as it contains more addresses and assets. This suggests that there is more support for Dogecoin at the lower end of the range. Due to this, the asset has a higher chance of breaking above the resistance.
If Dogecoin manages to slice through $0.076 with conviction, Martinez believes it could rally to $0.084, which represents the next significant hurdle. Notably, data confirms that another supply wall lies at this price position.
The $0.084 level had previously acted as a strong resistance for Dogecoin, as it rejected its attempts to rally higher in July during the market-wide resurgence triggered by XRP’s bullish momentum. Amid this price action, the TD Sequential recently flashed a DOGE buy signal.
Dogecoin is currently trading at $0.0742, up 1.26% over the past 24 hours, according to CoinMarketCap. Like other assets, DOGE is facing waning interest, evidenced in its declining trade volume. Volume for the asset has dropped 38% to $546,344,719.