Prominent market analyst Ali Martinez has highlighted the next significant resistance level for Dogecoin after it crossed a major supply zone at $0.20.
For context, Dogecoin, the largest meme coin by market cap, defied the persistent resistance zone at $0.20 yesterday, following its 2.73% rise. The trend followed a broader altcoin market bullish momentum shift, spurred by Ethereum’s rally past $3,500.
Dogecoin Defies Four-Month Hurdle
Notably, Dogecoin flipped the former $0.20 support to resistance in March following its weak price momentum. Since the drop, DOGE has struggled to reclaim the price level, failing on several attempts.
It retested the supply wall on March 26 when it rallied to a high of $0.2061 but saw a price rejection. It tried again exactly a month later but experienced a similar outcome. When it finally broke above in May and reached another resistance at $0.25, it gave way to selling pressure and dropped back below $0.20 again.
Meanwhile, Martinez put into context why that resistance level proved strong for Dogecoin. The meme coin had a massive UTXO realized price distribution (URPD) ATH-partitioned at the $0.20 price level.
For the uninitiated, the metric highlights the distribution of unspent transaction outputs (UTXOs), identifying the amount of an asset acquired at a particular price level between $0 and its all-time high. This indicator helps market users pinpoint critical support and resistance areas.
For Dogecoin, 10.94 billion DOGE (7.29% of its supply) exchanged hands at the $0.20 price level, posing substantial selling pressure. Nonetheless, DOGE has cleared the level, sparking a 9% rally today to $0.2411 at the time of writing.
Analyst Identifies Next Key Dogecoin Resistance
Notably, Martinez has identified the next major hurdle for Dogecoin after beating $0.20. Using the UTXP URPD ATH-partitioned metric, he shared that the next strong resistance lies around $0.36.
Approximately 5.64 billion DOGE, equivalent to 3.76% of its circulating supply, moved in that area. The massive accumulation zone might create selling pressure from profit-taking holders. As a result, it is worth taking note of.
Meanwhile, this suggests that Dogecoin may have a free run from its current price to $0.36. From here, it represents a 49% surge and a rally to a seven-month price high.
Remarkably, there are higher price predictions for Dogecoin. Analyst Trader Tardigrade predicted a run to $0.42, $1.46, and $4. Interestingly, there are also projections of a surge to an ambitious $12 price per DOGE.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
