#DOGE ($DOGE ) has the potential to quickly reach higher levels if and when #Glassnode breaks the $0.20 level.
According to the structure of crypto analytics firm Glassnode, 7% of Dogecoinâs supply is concentrated at $0.20. This level is the third and largest mass distribution after $0.17 and $0.07. While there were large purchases at this level around January 22, these expenditures have likely already been made and have raised their cost bases. This means that there could be short-term resistance at $0.20.
Dogecoinâs price is currently trading at $0.202. If the $0.20 level is broken, there is a significant supply of 0.31. This basis increases Dogecoinâs potential to rise rapidly because there is no significant resistance level in between. If trading volume increases, momentum for a breakout can be expected.
15% of Dogecoin supply has moved in the last 6-12 months. This is an indicator created by those who bought before the November-December rally and are still holding. This shows that their confidence in Dogecoin is strong.
Starting in March, HODL started to increase for 3-6 months. This shows that many investors continue their relationships between $0.32 and $0.41 in January. If the price returns to this level, some may choose to sell for simple profits, which could indicate possible resistance for Dogecoin in the future.
Finally, Dogecoin's futures positions (OI) are around $1 billion, which is quite low compared to the November-December 2024 averages. The 7-day futures volume is showing an upward increase, but it is still at October 2024 levels.
This rally is due to spot enrichment rather than leveraged speculation. Also, the supply levels for Dogecoin have declined over the last two prices and are currently showing neutral growth, confirming that the rally was not caused by overlong supplies and that the market is driven by spot buying.
