The price of Dogecoin (DOGE) is showing a slight recovery this October 23. However, this rally is fragile. Data from the on-chain analytics platform Glassnode reveals that veteran holders are pulling back. This is happening as the digital asset confronts the Dogecoin price resistance at $0.21, its toughest test in weeks.
Glassnode’s “Hodler Net Position Change” metric shows a worrying trend. On October 16, long-term investors added 109.8 million DOGE. Nonetheless, by October 22, that figure plummeted to just 38.3 million. This represents a 65% drop in accumulation from the oldest investors.
In contrast, short- and mid-term buyers are trying to hold the line. The 1-week to 1-month group increased its share from 5.59% to 5.98% since October 15. Likewise, the 3-month to 6-month cohort grew from 7.36% to 8.15%. This push and pull has consolidated a very firm price ceiling.
The real barrier is seen on the “Cost Basis Distribution” heatmap. This analysis identifies where the majority of coins were purchased. There are two massive supply clusters right in the resistance zone. About 11.16 billion DOGE were purchased between $0.202 and $0.206.
Additionally, another 11.14 billion DOGE were acquired between $0.210 and $0.212. Together, these zones total more than 22 billion coins. They form one of the strongest short-term barriers for Dogecoin. Every time the price hits this level, investors sell to reach their breakeven point, halting the momentum.
Can Short-Term Buyers Break Through the Sell Wall?
The current situation keeps the DOGE price trapped in a narrow range. The selling pressure at the Dogecoin price resistance at $0.21 is significant. To overcome this zone, aggressive buying from whales would be needed to absorb the supply.
Until that happens, the asset remains vulnerable. Technical analysts, observing TradingView charts, point to two clear paths. A successful breakout above $0.21 could open the way toward $0.27. This scenario would represent an approximately 12% rally from current levels.
On the other hand, the downside risk is equally clear. If Dogecoin fails to hold its current support, a drop below the $0.17 level could be triggered. Such a negative move would send the memecoin’s price back toward the $0.14 zone.
The market is watching to see if new buyers will have sufficient strength. The balance between the breakeven supply and new demand will determine DOGE’s next direction in the digital economy. The Dogecoin price resistance at $0.21 remains the level to watch.
