Dogecoin price flipping $0.075 hurdle into support could see DOGE go 15% berserk
|- Dogecoin price is trading with a bullish bias, but the $0.075 resistance level presents a formidable hurdle.
- Data from IntoTheBlock indicates almost 445,000 addresses placing a sell wall around this level.
- A decisive flip of this barricade into support could pave the way for up to 15% in profits for DOGE holders.
Dogecoin (DOGE) price is trading with a bullish bias, consolidating along a bullish technical formation and steadily flipping key resistance levels into support floors. However, the giant meme coin has encountered a critical barrier, with multiple efforts to breach proving unsuccessful or premature at best.
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Dogecoin price faces a sell wall
Dogecoin (DOGE) price recorded an intra-day high of $0.076 on July 21, marking a 10% climb on the day. The move saw the meme count breach the $0.075 resistance level for the first time since May. However, the breakout proved premature as DOGE retracted 6% to the current price of $0.072.
Based on how formidable this roadblock has been, it appears investors have placed a sell wall around the $0.075 zone as it continues to repel the asset’s price. A successful breach of this supplier congestion zone could make the Dogecoin price go berserk.
If DOGE bulls fail to overcome the level they risk Dogecoin price pulling back to lose support offered by the 50- and 100-day Exponential Moving Average (EMA) at $0.070 and $0.074, respectively before. In a dire case, the largest meme coin by trading volume could fall below the uptrend line.
Data from IntoTheBlock reveals the extremity of the $0.075 zone, seeing as it falls within a range where 443,980 addresses bought approximately 34.34 billion DOGE tokens at an average price of $0.079. This means that any attempts by Dogecoin price to break above this zone would be met by selling pressure from all these addresses as they either book profits or cash in after breaking even.
At the current price range, up to 63.03 billion DOGE tokens (on volume metrics) are out of the money, meaning their holders are incurring losses on their positions. This explains the high selling pressure around the $0.075 level as holders look to sell once the market value hits their average cost and break even price. Accordingly, it acts as a resistance level, impeding every attempt to continue rallying north.
DOGE/USDT 1-Day Chart
If the Dogecoin price manages to break above this level, the Dogecoin price could record a fresh increase, potentially tagging the $0.084 resistance level. Such a move would constitute a 12% climb from the current level.
In a highly bullish case, a victory over this barricade could see the Dogecoin price extend a leg north to tag the $0.096 resistance level.
The Relative Strength Index (RSI) is headed north, suggesting rising momentum. This, coupled with the position of the Awesome Oscillators (AO) in positive territory, favors the bulls.
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