A cryptocurrency analyst has pointed out how a Dogecoin price level holds the cost basis of a notable amount of the memecoin, potentially making it a major support line.
Dogecoin Traders Last Moved 28 Billion Tokens At $0.074Below is the chart for the metric shared by Martinez.
As displayed in the graph, Dogecoin is currently trading around levels where little supply last changed hands. The nearest major cost basis center lies at $0.074, where 28 billion tokens of the cryptocurrency last became involved in transactions.
It’s hard to say for sure how these holders would react to their cost basis being threatened, but often, traders try to protect their break-even level by participating in more accumulation. Though, this is usually the case when the market mood is positive.
Given the sheer scale of the $0.074 supply barrier, however, any buying reaction could be of a significant degree. This is why the analyst has called it “one of the most important support zones” for Dogecoin.
As is visible in the below chart, Dogecoin has been moving down this pattern on the 4-hour timeframe.
Earlier this month, the coin retested the resistance level of the channel, but it ended up finding rejection. Currently, DOGE is trading about midway between the upper and lower levels, so it’s uncertain which level it might end up visiting next.
In the scenario that an escape from the triangle occurs during the next retest, it’s possible that Dogecoin could see a sustained move in the direction of the breakout. Based on the height of the Descending Triangle, Martinez has noted that a 29% move could be on the horizon for the asset.
DOGE PriceAt the time of writing, Dogecoin is floating around $0.095, down over 7% in the last seven days.
