Dogecoin (DOGE) has been making headlines recently, particularly after an impressive 18% rally over the past three days. Not only has this positioned it as the best-performing cryptocurrency among the top 30 by market capitalization over the last week, but it is also showing signs of reaching its highest weekly returns of 2025—a feat not achieved since the last week of 2024.
According to on-chain data from Glassnode, 7% of the DOGE supply is concentrated around the key price level of $0.20. This concentration implies potential resistance at this level, as more investors might consider it an exit point to realize gains. However, analysts are optimistic about DOGE’s price trajectory if it can breach this resistance. Glassnode noted, “If $0.20 is breached, there’s little Dogecoin supply until $0.31 – the next major URPD cluster. This gap raises the probability of a sharp leg higher, as there’s not much resistance in between.” A breakout to $0.31 represents a significant potential for a 55% price surge from $0.20, setting the stage for a more bullish market structure on the higher time frames.
Beyond $0.20, the subsequent resistance levels appear between $0.32 and $0.41, which correspond to the 3 to 6-month HODL waves where investors acquired DOGE in January. These levels may act as a sell ceiling as some traders could be looking to exit their positions around break-even, leading to increased selling pressure.
Breaking New Ground Against Bearish Sentiment
On March 24, the announcement from House of Doge regarding the launch of “The Official Dogecoin Reserve” significantly contributed to the positive sentiment surrounding DOGE. With an initial purchase of 10 million DOGE tokens, the news has spurred interest and optimism within the Dogecoin community. The foundation aims to create a reliable payments ecosystem, enhancing liquidity and stability.
Furthermore, the recent price action has resulted in DOGE breaking through a descending trendline that formed over the past three months. This breach, noted by Trader Tardigrade, could imply a short-term bullish trend for DOGE price, indicating potential for a relief rally in the coming days.
The future of Dogecoin appears to hinge on its ability to maintain these upward trends while navigating around critical resistance levels. As always, investors are urged to conduct thorough research and consider their risk tolerance when engaging in cryptocurrency trading.
Disclaimer: This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
