Dogecoin (DOGE) has been an outlier among memecoins, refraining from joining the broader market’s price increases in the last 24 hours. However, indicators suggest that DOGE might soon follow suit.
Increased Holding Time Signals Stability
A key factor leading to this assertion is the increase in Coins Holding Time, which measures how long coins are held without transactions. According to IntoTheBlock, Dogecoin’s Coins Holding Time has surged by an impressive 387.03% in the past week. This indicates that more holders are opting to HODL (Hold On for Dear Life), a strategy where investors keep their assets despite price fluctuations, minimizing selling pressure.
Implications of HODLing for DOGE’s Future
With more holders committed to HODLing, Dogecoin could experience greater price stability. If buying pressure also rises, this could potentially drive DOGE’s price upward. Currently, DOGE is trading at $0.12, reflecting a 20.78% decrease over the last 30 days. Concurrently, trading volume has dropped by 33%, indicating that the downtrend might be weakening, setting the stage for a price rebound.
Technical Analysis Points to Potential Upswing
From a technical standpoint, several indicators suggest a positive outlook for DOGE. The Awesome Oscillator (AO), which measures market momentum, has moved into the positive territory, signaling increasing momentum for Dogecoin. Similarly, the Relative Strength Index (RSI) has risen but remains below the 50.00 neutral mark, indicating potential price stability around the $0.12 level with possible upward movement if the RSI crosses this threshold.
The Fibonacci Retracement indicator highlights key support and resistance levels. The 61.8% Fib level at $0.13 suggests that DOGE could move towards this price point. In a bullish scenario, DOGE’s price might even rise to $0.15.
Participation and Timing
The Daily Active Addresses (DAA) metric, which tracks active users on the blockchain, shows a -79.13% price DAA divergence, indicating lower participation relative to price growth. This suggests it might be an opportune time to buy DOGE before a potential upswing.