Dogecoin Price Action: Surge Or Sell-Off?

Fear, uncertainty, and doubt (FUD) is increasing in the crypto community as Dogecoin approaches the $0.17 threshold. The fear is similar to that of Dogecoin (doge – usd) If the price reaches $0.170, a sell-off may occur. why? Because at this level, about 10 billion Dogecoins will be in profit, for a total of about $1.6 billion.

Slim margins, strong DOGE holder

While the jump above $0.17 may be good news for meme lovers and profit seekers, it is a double-edged sword. Most of these coins were picked up between $0.148 and $0.168, so we are not talking about significant profits. This modest return may not be enough to trigger a selling frenzy, suggesting some holders may hold onto a higher peak.

Much of the FUD generated cites data from the on-chain analytics platform IntoTheBlock, but the same platform also provides several other insights.

  1. The average holding period for Dogecoin is 2.2 years.
  2. Net flows have been negative to neutral over the past few weeks.
  3. Most importantly, an astonishing 86% of Dogecoin holders have been making money for some time.

The combination of long holding times, continued accumulation in wallets holding whales, and other fundamental factors does not suggest that Dogecoin will face a decline in the short term.

Dogecoin technical analysis supports bullish outlook

From a technical analysis perspective, Dogecoin maintains a strong holding pattern above the support zone previously identified in the $0.150 to $0.156 value area. Over the past four trading days, DOGE has consolidated to the $0.160 level, giving bulls and bears alike reason to expect fireworks soon.

Although Dogecoin’s performance has lagged compared to its peers in the memecoin category, two key oscillators on the daily chart, the composite index and the detrended price oscillator, are currently showing two strong bullish signals.

First, the composite index has been trending above the fast-moving average and the slow-moving average. Second, the detrended price oscillator moved above the zero line and closed. The combination of these two events could give bulls the momentum they need to challenge Dogecoin’s next major resistance level at $0.204.

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