Dogecoin HODLers Remain Strong: What This Means for DOGE’s Future Price?

Dogecoin (DOGE) holders are steadfastly holding their positions, suggesting a potential price increase shortly. While many meme coins have experienced price surges recently, Dogecoin has remained relatively stable. However, indicators suggest that DOGE might be on the verge of a significant move.

One of the leading indicators of Dogecoin’s potential upswing is the increased holding time of the coin. According to IntoTheBlock, Dogecoin’s Coins Holding Time has surged by 387.03% in the past week.

This substantial increase indicates that holders are committed to HODLing (Hold On to Dear Life), a term used in the cryptocurrency world to describe the act of holding onto assets regardless of price fluctuations.

When coins are not transacted frequently, selling pressure remains low, which can contribute to price stability. If this holding pattern continues and is accompanied by increased buying pressure, Dogecoin’s price might see an upward trend.

Currently, Dogecoin is trading at $0.12, marking a 20.78% decline over the last 30 days. Trading volume has also decreased by 33% within the same period, suggesting a weakening downtrend and potential for a price rebound.

$DOGE Is in Optimal Buy Zone

Dogecoin’s price, trading at $0.13, has already witnessed a considerable drawdown in the last two weeks. The meme coin will now potentially witness consolidation between $0.15 and $0.12. pic.twitter.com/tTuZjL68J1

— Dendy (@tutdenizka) June 17, 2024

Analyzing Dogecoin’s price potential from a technical perspective reveals some promising signs. The DOGE/USD 4-hour chart shows that the Awesome Oscillator (AO), a tool that measures market momentum, has entered the positive region.

This indicates increasing momentum for Dogecoin. Similarly, the Relative Strength Index (RSI) has been rising, though it remains below the neutral 50.00 zone. This suggests that Dogecoin’s price might hover around $0.12 for a while but could break higher if momentum continues to build.

Further analysis using the Fibonacci Retracement indicator highlights potential support and resistance levels. The 61.8% Fibonacci level is at $0.13, indicating a possible target for Dogecoin. In an extremely bullish scenario, DOGE’s price could rise to $0.15.

Additionally, examining the price DAA (Daily Active Addresses) divergence, which measures the number of active users on the blockchain relative to price, reveals a -79.13% divergence. This suggests that the network’s participation rate is lower than the price growth, signalling a potential buying opportunity before an upswing.

Given these technical and on-chain indicators, now might be a strategic time to invest in Dogecoin. The increased holding time, combined with the positive momentum indicators, suggests that DOGE could experience a price increase soon.

While the current RSI reading indicates some caution, a break above the neutral zone could lead to significant gains.

Quotes from analysts emphasize this potential. “The current holding pattern among Dogecoin investors indicates strong support levels and potential for price stability,” notes a crypto analyst. If the broader market conditions improve, Dogecoin could see a notable price increase.

In conclusion, Dogecoin’s resilient holders and promising technical indicators suggest a potential price upswing. Investors should monitor these metrics closely and consider the current market conditions to make informed decisions. As always, while the indicators are positive, it is crucial to remain vigilant and stay updated with market trends.