Recent on-chain data reveals a significant shift in Dogecoin’s (DOGE) supply dynamics, with crucial support and resistance levels emerging that could determine the meme coin’s next major move. As previously reported, these technical levels are proving decisive for DOGE’s price action.
Key Supply Metrics Signal Strong Holder Conviction
According to Glassnode’s latest analysis, over 7% of DOGE’s total supply is now concentrated at the $0.20 price level, forming the third-largest supply cluster after $0.17 and $0.07. This concentration suggests a significant accumulation zone that could act as both support and resistance.
The UTXO Realized Price Distribution (URPD) metric highlights several critical observations:
- Major capital inflows recorded on January 22, 2025
- Strong holder conviction with 15% of supply unmoved for 6-12 months
- Limited resistance between $0.20 and $0.31 levels
Supply Gap Could Trigger Sharp Price Movement
A notable supply gap exists between the $0.20 and $0.31 levels, potentially setting the stage for rapid price appreciation if the current resistance is breached. This technical structure aligns with recent analysis showing a massive cup pattern formation with higher targets.
Futures Market Shows Reduced Speculation
The derivatives market data presents interesting insights:
- Current futures open interest: $1 billion
- Previous average (Nov/Dec): Over $3 billion
- 7-day SMA futures volume: Recovering to October 2024 levels
- Funding rates: Near neutral, indicating balanced positioning
Expert Analysis and Price Outlook
Technical analyst Trader Tardigrade has identified a breakout from a 3-month descending trendline, suggesting potential short-term upside. This technical development, combined with strong holder metrics, points to possible price appreciation in the coming weeks.
Frequently Asked Questions
What is the significance of the $0.20 price level for Dogecoin?
The $0.20 level represents a major supply concentration zone where over 7% of DOGE’s total supply is held, making it a crucial technical level for future price movement.
How does the current futures open interest compare to previous months?
Current futures open interest stands at $1 billion, significantly lower than the November/December average of over $3 billion, indicating reduced speculative activity.
What percentage of Dogecoin holders are maintaining long-term positions?
Approximately 15% of DOGE’s supply has remained unmoved for 6-12 months, demonstrating strong holder conviction in the asset’s long-term potential.