Analyst Identifies $0.20 as Key Resistance Level for Dogecoin

An analyst has identified $0.20 as a significant resistance level for Dogecoin based on on-chain supply distribution data. This conclusion is drawn from the Cost Basis Distribution (CBD), which shows that over 11.7 billion DOGE tokens were acquired at this price point.

The CBD heatmap indicates heavy buying occurred around $0.20.
Currently, DOGE trades below this level, placing many holders in a loss position.
A rise to $0.20 may prompt selling as investors reach their break-even point, creating potential resistance.
No other dense supply regions exist between the current price and $0.20, highlighting its importance as a resistance level.

Recent network activity for Dogecoin has surged, with active addresses peaking at 71,589, marking the highest level since September. This increase suggests renewed attention on the network, though it remains unclear whether it signals accumulation or distribution.

As of now, Dogecoin is trading at approximately $0.138, having decreased by over 7% in the past week.