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Holders of Dogecoin are keeping a careful eye on the price action as the meme coin gets closer to a crucial level that might lead to a much-needed breakout. The key resistance level of $0.11, where about 23,400 addresses are holding about 31 billion DOGE, is getting closer, according to on-chain data.
Given that on-chain signals are beginning to exhibit largely bullish sentiment, a breakout above this level may indicate a significant bullish move. The chart indicates that Dogecoin's price has been steadily bouncing between $0.09 and $0.11 over the past few months.
Right now, DOGE is trading at about $0.10, which is not too far below the 50-day moving average. DOGE must break above the $0.11 resistance level in order to verify a breakout. The sheer quantity of addresses holding DOGE at this price point makes this level noteworthy.
If the breakthrough is successful, demand might spike and DOGE might move toward its next resistance levels, which are at $0.12 and $0.13. Currently 71% of DOGE holders are in the money, with only 27% out of the money, according to on-chain data. Strong exchange signals that show DOGE's smart price and bid-ask volume imbalance are both leaning bullish and add to the optimism.
Gamza KhanzadaevFurthermore, the concentration of large holders, which stands at 62%, shows that whales are still optimistic about Dogecoin's potential, even though large transactions have somewhat declined. In order to be successful in trading, Dogecoin traders need to stay above the $0.11 level.
A rally toward $0.12 and higher may be possible if DOGE is able to overcome this resistance. Nevertheless, in the event that DOGE is unable to breach this barrier, it might carry on moving sideways and perhaps retest lower support levels around $0.09.
Tomiwabold Olajide
Gamza Khanzadaev