The Resistance Wall of Dogecoin Ahead: Analyst Marks 3 Key Levels

In a recent post on X, analyst Ali Martinez shared the levels of DOGE that could be important resistance boundaries. The levels being discussed correspond to the main supply walls on the Dogecoin UTXO Realized Price Distribution (URPD).

URPD is an on-chain indicator from the analytics company Glassnode that tells us about the total amount of memecoin purchased recently at different price levels in history. Here is the chart posted by Martinez showing what URPD looks like for Dogecoin currently:

As shown in the chart above, the closest level to the latest Dogecoin spot price highlighted by URPD is $0.18. Investors have purchased approximately 8.94% of the asset's most recent supply around this milestone. Of course, because the price is higher than the spot price, all these holders will be at a loss at this point. Overall, the losing investors are hoping to test their breakeven level so they can get their money back. Typically, these holders will push to exit their positions as soon as this happens, fearing that the price will drop again in the near future. Therefore, whenever the price tests the cost basis of a significant portion of the supply from below, a significant selling reaction may sometimes occur in the market. This can create resistance to the cryptocurrency. Considering that the level of $0.18 is particularly large, it could act as a notable resistance point. Similarly, the analyst has also marked two other levels: $0.21 (7.24% supply) and $0.36 (3.82% supply). Interestingly, between these two levels, there are no significant supply walls, meaning that if Dogecoin can enter this zone, then at least theoretically, it could easily climb higher. However, in the event that DOGE is rejected at the resistance level, it may need to seek support at profit-taking supply zones. Holders at these levels may react to the decline in their cost basis by buying more, as they may believe that the drop is just a buying opportunity when the price decreases. The only level lower than the current spot price of Dogecoin that stands out in terms of supply is at $0.07. This level holds a buyback mark of 20.03% of the supply of the memecoin, which means it has a very large scale and therefore could be a strong support center.