Analysts Say Dogecoin Breaking These Levels Could Be a Catalyst for the Next Price Rise

In a new post on X, analyst Ali Martinez discussed the current resistance walls for DOGE based on the UTXO (URPD) real price distribution. URPD is an on-chain metric created by the analytics company Glassnode, which provides us with a summary of the amount of supply that has been purchased at various levels that Dogecoin has reached throughout its history. Coins are said to be 'acquired' when they participate in a transaction on the blockchain. Therefore, the URPD records the price at the time of the last transaction of any coin as its cost basis. Below is a chart shared by the analyst showing the current situation of Dogecoin URPD:

As can be seen in the chart above, the largest supply wall that Dogecoin has is at $0.07, where more than 20% of all circulating coins were last traded. With the current price of DOGE trading much higher than this level, all this supply will be sitting on a significant profit. Overall, when the cryptocurrency price tests the cost basis of investors who were previously in profit, holders may react by accumulating more if the market sentiment is optimistic. This is due to the fact that they may tend to think that the same price will be profitable again in the future, so the retest will feel like a 'discount' opportunity. Similarly, when the retracement occurs in the opposite direction, investors may react by selling off because they might fear that the asset will drop back down again, thus this could be an opportunity for them to exit with their entire investment. From the chart, it can be seen that in terms of the magnitude of Dogecoin's loss, there are currently two levels that stand out in terms of size: $0.18 and $0.21. The former accounts for about 8% of supply, while the latter is 7%. Considering the significant supply present at these levels, they may act as a major resistance barrier due to the previously explained selling effect. However, if DOGE can surpass these levels, there is no other large supply wall in sight. Martinez notes that "Breaking through both could be the catalyst for the next major price surge."