Dogecoin HODLers stay firm: What this tells us about DOGE’s future
  • Dogecoin holders are refraining from selling, which could pave the way for a price rise.
  • Technical indicators suggest picking up momentum and on-chain data suggests it is a good time to buy.

Dogecoin [DOGE] It was one of the few meme coins to refrain from increasing in price over the past 24 hours, but judging by the situation, this coin may soon move in a similar direction.

The leading cause of this assertion is coin holding time, which measures the number of days a coin is held without a transaction.

HODLing is the purpose of the game

If most coins are not trading, this means selling pressure will be minimal. However, increased trading activity suggests that a sell-off may occur in the meantime.

According to IntoTheBlock, the coin holding period for Dogecoin is Increased It has risen by a staggering 387.03% in the past seven days, which means holders are hanging on to HODL.

HODL stands for Hold On to Dear Life. In the cryptocurrency world, it refers to a situation where market participants decide not to sell, regardless of price fluctuations.

Dogecoin holding period extended

Source: IntoTheBlock

If this stance continues, DOGE may see some stability and, if accompanied by buying pressure, Dogecoin price could rise.

At the time of writing, DOGE is trading at $0.12, a decrease of 20.78% over the past 30 days. In terms of trading volume, AMBCrypto found that it dropped by 33% within the same period.

The one-month decline, along with a parallel decline in trading volume, suggests that the downtrend is weakening, and therefore, DOGE price may bounce back from the lows.

Now is the time to buy DOGE

Now, let’s look at the price potential from a technical perspective. According to the DOGE/USD 4-hours chart, Awesome Oscillator (AO) has risen into positive territory.

AO is a technical tool that measures momentum, therefore, a positive AO reading suggests that Dogecoin is gaining momentum.

Similar to the AO, the Relative Strength Index (RSI) reading has also risen. However, the RSI has yet to cross the neutral zone of 50.00, which is why the price may remain around $0.12 for some time to come.

However, a breakout above that point could potentially send the price of DOGE higher.Furthermore, we have used the Fibonaci retracement indicator to identify potential price points.

Dogecoin Price Target

Source: TradingView

The Fibonacci indicator points out potential support and resistance levels, and the chart confirms that the 61.8% Fibonacci level is at $0.13, indicating that DOGE may move towards that area.

In a very bullish case, the price can rise to $0.15. Additionally, we have looked at the DAA divergence in price.

DAA stands for Daily Active Addresses. It measures the number of active users on the blockchain. Combined with the price, this metric can tell you when to buy or sell cryptocurrency.

in particular, Entry Signal It appears when the price grows larger than the DAA. In another signal, the metric indicates that it is time to exit if the DAA grows larger than the price.

Dogecoin Buy Signal and Potential Increase

Source: Santiment

Is Your Portfolio Green? Check out the Dogecoin Profit Calculator

At the time of writing, Dogecoin’s Price DAA Deviation was -79.13%, indicating that network participation is lower than price growth.

Therefore, it may be time to buy the coin before the potential upside begins.

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