The $0.21 level is a key resistance point for long-term DOGE bulls.
Dogecoin's price trend has been bearish, breaking below May's low.
The $0.21 area must first be converted into a support level for the long-term trend to turn bullish.
Dogecoin [DOGE] has continued to decline over the past five weeks. The leading cryptocurrency erased 58% of its gains from the second week of May and fell below May's low on June 20.
AMBCrypto highlighted Dogecoin’s blueprint in a recent report. The surge in April and May may just be a prelude to a parabolic rebound.
In fact, the net flow indicator on exchanges has been negative for the past two weeks—this is a sign of DOGE accumulation.
Dogecoin holders do not need to panic.
The number of days Dogecoin has been destroyed surged significantly on June 14 and again on June 17. This reflects a substantial increase in old coin trading volume and indicates selling pressure.
However, the recent rise in CDD has yet to form a sustained trend like that seen from November to December 2024 or from June to July 2023. Therefore, it may still be too early to conclude that there is a sustained distribution on-chain, which could lead to capitulation (as in 2023) or massive profit-taking (as in late 2024).
The Cost Basis Distribution (CBD) heat map is a visualization of Dogecoin's supply density at different price levels over a period of time. Warm colors indicate higher supply levels and reflect strong supply and demand zones.
There are three different supply bands in the $0.182 to $0.211 range. They attempted to stop the Dogecoin shorts but failed. This means that if Dogecoin rebounds, panicking holders may choose to close their positions at these price levels, which could make a stronger rebound more difficult.
From August to September 2024, gold prices fell below a key demand range but rebounded a few months later. Considering the forex outflows seen in the past two weeks, a similar situation is expected in the coming months.
