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Dogecoin, popular in the cryptocurrency community, trades in the Doge price cluster worth $43 billion. Based on on-chain data, this concentration indicates that a large number of addresses are holding DOGE within a narrow price range. The question we are now asking is whether the price will overcome resistance or break out.
According to active addresses by profitability data, 137,000 addresses currently own or hold DOGE at breakeven prices between $0 and $11. It is important to note that given the large amount of DOGE in this range, holders of this cryptocurrency are likely to react to price changes by pushing the market up or down.
DOGE/USDT chart by TradingView
Based on price performance, only 13.31% of addresses are in the money or profitable at the current price of approximately $0.109. From a technical perspective, DOGE has seen volatility over the past few months. Looking at the daily price chart, we can see that DOGE is currently trading below its long-term moving averages (100 EMA and 200 EMA). This often indicates bearish sentiment.
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However, the price is holding firm near the 200 EMA, which could act as strong resistance or trigger a potential breakout if it gains momentum. The relative strength index near the 50 mark suggests neutral momentum. If DOGE can break out of key resistance levels, especially $0.120, it could ignite a bull run. On the downside, if sellers take control, there is a possibility of a retest of the $0.09 level.
On the other hand, 17.79% of addresses are holding DOGE out of the money or at a loss, creating potential resistance as these holders may sell after the price recovers. With 69% of total addresses breaking even, this cluster plays a pivotal role in short-term price direction.
