Dogecoin Is Currently Sandwiched Between Major Support And Resistance Levels
In a new on X, analyst Ali has discussed what the on-chain support and resistance levels are looking like for Dogecoin right now. A price level is said to be an on-chain support or resistance level on the basis of whether a large number of investors share their cost basis at it or not.
“Cost basis” here naturally refers to the average price at which a holder acquired their DOGE. When the spot price is below the cost basis of an investor, they are naturally in a state of loss, while it being above implies they are enjoying positive returns.
Looks like the current price levels are surrounded by major investor blocks | Source:For any investor, their cost basis is an important psychological level and they may be prone to making some moves whenever the spot price retests it. Thus, if a large number of holders share their cost basis close together inside a particular range, the market could potentially see a sizeable reaction when the asset’s price ventures into the range.
The reason behind this is that the holders may tend to believe that if this same level had been profitable earlier, it might be so again in the future, so they participate in some accumulation.
The opposite is the case whenever the Dogecoin price retests the cost basis of a large amount of investors from below. These investors would be tempted to exit at their break-even so the cryptocurrency could face resistance.DOGE Price
Dogecoin is currently battling against the resistance offered by the aforementioned range as its price is floating around $0.075.The price of the memecoin appears to have been going up recently | Source: