In a recent post on X, analyst Ali Martinez shared DOGE levels that could be significant resistance boundaries. The levels being mentioned correspond to the main supply walls on Dogecoin's Actual Price Distribution (URPD).
URPD is an on-chain indicator from the analytics firm Glassnode that tells us about the total amount of memecoin purchased most recently at different price levels in history.
Below is the chart posted by Martinez showing what URPD looks like for the current Dogecoin:
As shown in the chart above, the closest level to the latest Dogecoin spot price that stands out in terms of URPD is $0.18. Investors bought approximately 8.94% of the asset's supply most recently around this milestone.
Of course, since the price is higher than the spot price, all these holders will be at a loss at this time. Generally, losing investors hope to retest 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 prices will drop again in the near future.
Therefore, whenever the price retests the cost basis of a significant portion of the supply from below, a notable selling reaction may sometimes occur in the market. This can create resistance for the cryptocurrency.
Considering that the $0.18 level is particularly significant, it may act as a notable resistance point. Similarly, the analyst has also marked two other levels: $0.21 (7.24% of supply) and $0.36 (3.82% of supply). Interestingly, there are no significant supply walls between these two levels, meaning that if Dogecoin can enter this range, it could theoretically climb more easily.
However, in the event that DOGE is rejected at the resistance level, it may need to find support at profitable supply areas. Holders at these levels might react to the decrease in their cost basis by buying more, as they may believe that the drop is just a buying opportunity when prices decline.
The only level below 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 is very large in scale and could therefore be a strong support center.
