Dogecoin (DOGE) has been a curious case in the recent cryptocurrency market. While many memecoins enjoyed a price surge, DOGE remained relatively stable. But this lack of movement might be a prelude to something bigger, with analysts pointing to a potential upswing on the horizon.
One key indicator is the rising “Coins Holding Time” for DOGE. This metric tracks the average amount of time coins are held without being sold. A significant increase, as seen with DOGE in the last week (387%), suggests a strong holding mentality among investors. HODLing, which stands for “Hold On for Dear Life,” indicates a willingness to ride out price fluctuations and hold onto the asset for the long term.
This holding trend could lead to price stability for DOGE. If accompanied by renewed buying pressure, it could even trigger a price increase. While DOGE is currently trading at $0.12, a 20% decrease from a month ago, the declining trading volume alongside the price dip suggests a weakening downtrend. This could pave the way for a bounceback from the lows.
Technical indicators also offer a glimmer of hope. The Awesome Oscillator (AO), which measures momentum, is showing positive signs on the 4-hour DOGE/USD chart. Similarly, the Relative Strength Index (RSI) suggests increasing momentum, although it hasn’t yet broken through the neutral zone. This could mean a period of consolidation around the $0.12 mark, but a breakout could propel DOGE higher.
The Fibonacci Retracement tool adds another layer of optimism. This indicator identifies potential support and resistance levels. The 61.8% Fib level sits at $0.13, hinting at a possible move towards that area for DOGE. In a more bullish scenario, the price could even reach $0.15.
Finally, the Daily Active Addresses (DAA) divergence offers another buying signal. DAA measures the number of active users on the Dogecoin blockchain. When compared to price, it can indicate opportune moments to buy or sell. In this case, a situation where price growth outpaces DAA suggests a potential buying opportunity.
While the future remains uncertain, the current trends in the DOGE market paint an interesting picture. The strong HODLing sentiment, coupled with technical indicators and on-chain data, suggests that a price increase could be on the cards. However, as with any cryptocurrency investment, caution is always advised.
