Dogecoin (DOGE), known as the prank coin, experienced a price increase last week in line with the broader cryptocurrency market.
Leading crypto trading expert Ali Martinez said that according to on-chain data, the original meme coin has the potential to rise to $0.21 without much effort. On the other hand, Martinez stated that the coin may see some resistance around the said level due to the number of holders who may be at a loss at the moment.
“On-chain data shows that Dogecoin could be free to move towards $0.21 without hesitation. But around this price point, DOGE may face stiff resistance as more than 631,000 addresses holding more than 48 billion DOGE are at a loss.”
The indicator that we see above and that Ali Martinez also makes use of in his analysis is the In / Out of the Money Around Price (IOMAP) indicator developed by IntoTheBlock. While the indicator cannot be used to identify exact resistance or support points, it can provide information about the concentration of funds around a particular price. In this indicator, the average price, that is, the cost, at which cryptocurrencies were purchased, is determined and compared with the current price. If Current Price is greater than average cost, this address is “In”, that is, “in profit”. If the current price is less than the average cost, the address is “Out”, that is, “at a loss”.
What is noteworthy in Martinez’s analysis is that more than 631,000 addresses, representing a total of 48 billion DOGE, are currently in red, or at a loss. If these investors decide to take a profit or at least sell at cost, we may face a sell-off depending on the market momentum around the asset at that time.
Latest Status on DOGE Price
Currently, DOGE is trading at $0.1438, up 1.70% on the day and up 7.07% from last week, according to data from CoinMarketCap. Dogecoin has a total market cap of $19,081 billion at the time of publication.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.