As of yesterday, the broad crypto market has experienced a sudden shift in sentiment, with leading cryptocurrencies showing a rapid price resurgence after about a week of severe corrections. Amid this recovery, a new support level has been identified for the world’s leading meme cryptocurrency, Dogecoin (DOGE).
On Saturday, November 8, popular crypto analyst Ali Martinez shared an on-chain analysis from Glassnode suggesting a new resistance level for Dogecoin amid unstable market conditions. According to the data, over 11.12 billion DOGE tokens were purchased around the $0.20 price point.
A cost-basis distribution heat map from Glassnode reveals that Dogecoin is facing a critical resistance zone at the $0.20 level, where a heavy concentration of holders accumulated their positions. This clustering indicates that many investors bought DOGE at or near the $0.20 mark, creating a significant supply barrier in this price range.
Typically, as observed with other cryptocurrencies, when prices revisit such levels, previously trapped holders tend to sell to break even. This selling pressure often creates a strong resistance zone, making it difficult for the price to move beyond that area.
In recent weeks, Dogecoin has experienced heightened volatility but has repeatedly failed to reclaim higher price ranges. Consequently, the price has once again dropped below this significant resistance band.
### What’s Next for DOGE?
While on-chain data suggests buyers who accumulated DOGE around $0.20 may require renewed bullish momentum to push above this level, some speculators believe Dogecoin may have already entered its bear season.
Yesterday’s sudden rebound brought some optimism to DOGE traders. However, the cryptocurrency remains under pressure, trading around $0.18 despite a notable surge of over 7%. The coming days will be crucial in determining if Dogecoin can overcome this resistance and sustain an upward trajectory.
https://u.today/dogecoin-forms-strong-resistance-around-020-price-rally-next