The size of the dots on the chart corresponds to the number of addresses that have bought coins in the corresponding range: the range from $0.096 to $0.139 is the largest Dogecoin price range currently available by this measure.
Specifically, 409,330 addresses have purchased a total of 45 billion #Dogecoin in this range. So what is the significance of this or any other demand zone?
In general, the underlying value is an important level for investors, so when the spot price of a #cryptocurrency repeats this level, investors tend to show some reaction.
The few investors who react in this way are naturally irrelevant to the market as a whole. However, if many investors share value in the same narrow range, a retest could trigger a significant reaction as prices feel the impact.
In the demand zone around the average price of $0.115, many addresses are buying the coin, so a retest could be significant for the memcoin.
Since Dogecoin's current price is above this range, investors buying coins in this range will benefit. Historically, demand zones below these prices act as support points for #cryptocurrencies .
This is because investor sentiment is usually triggered, and holders who took profits before the retest may decide to buy more assets in the belief that prices will rise again.
On the other hand, investors who were in the negative before the retest may sell for fear that prices will fall again, thereby increasing resistance to cryptocurrencies. IntoTheBlock notes: "Meanwhile, #DOGE may face resistance around $0.16, where 20 billion DOGE is currently holding in losses.
It remains to be seen if a lower intra-chain demand zone will help stop memcoin's decline if prices fall enough to retest.
Read us at: Compass Investments