Dogecoin (DOGE) hit $0.43 about a week ago but has since dropped to $0.37. Even so, it appears that holders are not resorting to selling, suggesting increased conviction about memecoin's potential.
According to analysts, this sentiment could indicate that DOGE is ready for a new high.
Investors prefer to hold DOGE
It has been seven days since the price of memecoin reached its annual peak. Despite the drop since then, data from IntoTheBlock shows that Coin Holding Time has increased by more than 100%.
Coin Holding Time indicators measure how long a cryptocurrency has been held without being traded or sold, providing insights into investor behavior. When it decreases, it means holders are selling, and the price may decline.
However, as the holding time has increased, most holders have refrained from trading their DOGE. This is generally a positive sign, and if this remains the case, the cryptocurrency’s value could continue to rise.
Dogecoin Coin Holding Time. Source: IntoTheBlock
Additionally, on-chain data from Santiment shows a notable drop in the memecoin’s circulation. In most cases, when this metric increases, it means that selling pressure has potentially increased. However, for DOGE, circulation has dropped from 5.88 billion to 969.06 million at press time.
Like Coin Holding Time, a decrease in circulation is a positive sign, indicating increased buying pressure. If this decline continues, the price could rise above $0.37.
Dogecoin circulation. Source: Santiment
Dogecoin Price Prediction
Dogecoin has formed a bull flag on the 4-hour chart. The last time this happened, its price increased by over 100%.
Dogecoin 4-hour analysis. Source: TradingView
Considering this outlook, the memecoin’s price is likely to rise above $0.50 in the short term. However, if holders start selling, this may not happen. In that case, it could fall below $0.30.
The article Dogecoin (DOGE) shows resilience and excites analysts appeared first on BeInCrypto Brasil.
