Dogecoin (DOGE) surged past $0.111, showing bullish momentum with minimal resistance ahead.

Today, the meme coin market leader Dogecoin saw a notable price surge, climbing past the critical $0.111 level. Specifically, DOGE advanced by over 5% in the last 24 hours, reaching an intraday high of $0.116.

While this movement confirms potential bullish momentum, experts stress the need for DOGE to maintain its position above the $0.111 level to confirm continued upward momentum.

Current Market Position 

Analyst Ali Martinez recently shared market data that provides insights into the positioning of Dogecoin holders within the current market.

Around 62,270 addresses collectively hold more than 36 billion DOGE, with acquisition prices ranging between $0.108090 and $0.111445. The average acquisition price for these holders is $0.109221, placing them at a profit. 

Diving into the data, approximately 84.70% of DOGE holders are currently profitable, holding 55.64 billion DOGE worth about $6.21 billion, acquired at prices between $0.094671 and $0.109221.

This suggests that the majority of holders purchased below the current market price. Conversely, about 15.04% of holders, owning 9.88 billion DOGE valued at $1.1 billion, remain at a loss due to acquiring DOGE at higher price points.

This distribution highlights the significance of maintaining the current price level, as it keeps the majority of holders in profit. A continued hold above this threshold could further solidify market confidence.

Path to Higher Levels

Martinez’s observation reveals minimal resistance for DOGE, with most holders having acquired their tokens at lower prices. This suggests that upward momentum could face fewer supply barriers, offering the potential for further price increases.

According to the analyst, the absence of significant resistance above the current price could allow DOGE to aim for the $0.150 mark if the current bullish sentiment persists.

Notably, recent inflows of large holders add to the potential upward momentum for Dogecoin. While a recent spike in inflows reflects a 24.03% short-term increase, longer-term trends still show mixed signals. Despite this short-term positive movement, the 30-day inflow change remains down by 73.06%, and the 90-day change is slightly negative at -5.88%.

A September 19 report revealed that Dogecoin broke above a descending trendline, indicating a potential shift in market sentiment. At that time, Dogecoin’s price hovered near the 78.6% Fibonacci level at $0.10067, which served as a support zone.

The latest update shows that Dogecoin has continued its uptrend. Now, Martinez predicts that a confirmed breakout could significantly propel the price to $0.150, provided the recently reclaimed resistance at $0.111 holds.

Dogecoin founder Shibetoshi Nakamoto has called on the Securities and Exchange Commission (SEC) boss Gary Gensler to declare that DOGE is not a security.

In a tweet on Thursday, Nakamoto (also Billy Markus) stated that Bitcoin’s exemption as a security should nullify claims that Dogecoin is one. He based his assertion on the premise that Dogecoin was primarily built with the same code as the largest cryptocurrency by market cap.

Notably, the Dogecoin founder made the comment in response to a report by Gensler stating that Bitcoin is not a security.

Dogecoin’s Relationship with Bitcoin

Billy Markus and Jackson Palmer launched Dogecoin in 2013 as a meme coin spin-off from the Litecoin network. The dog-themed token maintained Litecoin’s Scrypt algorithm while making certain modifications to its coin distribution parameter.

Notably, Litecoin also has its roots in Bitcoin. In 2011, it was created from a hard fork on Bitcoin’s open-source codes to improve the drawbacks seen on the Bitcoin network. Founder Charles Lee intended for Litecoin to enhance Bitcoin’s transaction speed and scalability issues.

From the analogy, Dogecoin copied its code from Bitcoin’s original codebase, which was improved on by Litecoin. Hence, Nakamoto’s claims of Dogecoin’s exemption as a security are valid.

It bears mentioning that the SEC has not classified DOGE as a security in any of its numerous lawsuits against exchanges. However, the agency has not declared the largest meme coin by market coin a commodity.

SEC Exempts Bitcoin

Today, During an interview with CNBC on Thursday, Gensler stated that Bitcoin was not a security. He noted that this assertion had been in place even when his predecessor, Jay Clayton, was in charge.

Interestingly, Bitcoin was the only asset Gensler stated he didn’t classify as a security, raising questions on the state of Ethereum and XRP, which a court declared not to be one. However, the Wall Street top regulator’s approval of the Ethereum spot exchange-traded fund and the suspension of its investigation into the Ethereum Foundation may have confirmed its view of the asset.

The Dogecoin ecosystem records an increase in bullish sentiments as whales go on a buying spree.

To the delight of the DOGE community, whale activities have resumed in the Dogecoin ecosystem. This increased large-scale DOGE accumulation has increased bullish sentiments around the DOGE price.

According to market expert Ali Martinez, Dogecoin whales stepped up their purchases, with data showing that they have bought 1.4 billion DOGE in the past two days. These whales spent $140 million to acquire the stash.

Accumulation Push Doge Past Major Resistance

Notable, the increased whale activities, among other bullish scenarios, have enabled DOGE to fight off a major resistance. Dogecoin surged past the $0.111 resistance level, where about 62,270 addresses hold over 36 billion DOGE.

It bears mentioning that supply regions of this nature are deemed resistant, as holders who have held at a loss tend to sell at break-even or with little profit.

Notably, Martinez had predicted this price action. According to an earlier report, the market analysts projected that DOGE would break past the $0.11 resistance.

Martinez cited positive signals from a break in pattern on Dogecoin’s Relative Strength Index (RSI) on the daily timeframe. The RSI broke above the descending trendline on 1D, signaling a bullish scenario.

What Next for Dogecoin

Meanwhile, the analyst predicted a further upside trend towards $0.15, as no major supply wall was in sight. He, however, noted that this sustained northward push would only be feasible if DOGE holds the $0.111 resistance.

So far, DOGE is holding the level, trading at $0.1148 at the time of writing. The largest memecoin by market cap has surged 5.56% in the past 24 hours, with its market cap hitting $16.7 billion.

Notably, Martinez had predicted a surge to $2 for Dogecoin. The analyst cited a bullish trend where the meme coin rallies significantly after breaking out from a descending triangle.

DOGE surged 229.6% after breaking and retesting a similar channel between 2015 and 2016. After a repetition of the scenario in 2018 to 2021, the memecoin pulled a 138% surge.

Dogecoin is on course to repeat the same pattern this bull run after a 60% correction from the 207% surge following the descending triangle breakout earlier in the year. Martinez sees DOGE reaching $2 if it completes historical rallies from this structure.