One analyst noted that Dogecoin has recaptured a major on-chain demand zone, which could open the way for it to move higher.

Dogecoin may not face much on-chain resistance at upcoming levels

In a new post on X, analyst Ali Martinez discusses how DOGE has just overcome an on-chain supply wall. An on-chain supply “wall” refers to a price range that carries a large investor cost base. Below is a chart from IntoTheBlock shared by the analyst showing how different Dogecoin price ranges are currently performing in this regard.

A large number of tokens appear to have been acquired in a range slightly below the current DOGE price | Source: @ali_charts on X

In the graph, the size of the dots corresponds to the amount of DOGE that an address on the network last bought between the corresponding price levels. The $0.108 to $0.111 range is particularly eye-catching, as it currently has a huge dot on it.

More specifically, the range contains the cost basis of approximately 62,270 addresses that purchased a total of 36.08 billion memecoin tokens at levels within its range. For any investor, their cost basis or acquisition level is naturally idiosyncratic, so when retested, they are prone to show some kind of reaction.

Dogecoin retesting a range where only a handful of investors were buying would not produce any significant reaction, but in the case of major demand areas, such as the previously mentioned $0.108 to $0.111 range, holders may react Enough simultaneous action to cause fluctuations in the value of the token.

How traders react to a retest of cost basis depends on investor psychology. A retest of cost basis by investors who previously lost money could result in a selling reaction, as these holders may fear that prices will fall again in the future and therefore may decide to exit at breakeven, at least to get their investment back in full.

Previously, Dogecoin’s spot price had retested the $0.108 to $0.111 range from below, but it looks like the resistance from these sellers was not enough to stop the memecoin’s price as it has risen sharply above this range in the past 24 hours.

Looking at the chart, unlike the latest range that DOGE just broke out of, the level ahead is relatively thin in terms of supply. “If DOGE holds this level, a bullish breakout could be confirmed,” Martinez noted. “With no major supply barriers in sight, the path to $0.150 looks clear!”

If the price of Dogecoin rises from its current levels to $0.150, it would mean a more than 31% increase in the price of the memecoin. It is unclear whether the asset will continue to rise in the coming days and if it will be able to reach this level.

DOGE Price

At the time of writing, Dogecoin is priced at around $0.114, having gained more than 9% over the past seven days.

The token price appears to have surged over the past day | Source: DOGEUSDT on TradingView