Dogecoin (DOGE) Holders Signal Potential Recovery
Dogecoin (DOGE) Price Consolidates, But Bullish Signals Emerge
Dogecoin (DOGE) is currently trading around $0.223, experiencing sideways movement amid fluctuating market conditions. While the price action remains subdued, key indicators suggest that significant investors may be positioning the token for a recovery from July's losses.
Long-Term Dogecoin Holders Show Accumulation Trend
An analysis of the HODLer net position change reveals a shift towards accumulation among long-term holders (LTHs). The decline in red bars, which typically represent selling pressure, indicates that LTHs are now accumulating rather than distributing their DOGE holdings.
This transition from selling to accumulation could pave the way for Dogecoin's recovery in the coming weeks. With fewer LTHs liquidating their positions, reduced downward pressure is expected. This shift, combined with ongoing accumulation, reflects continued confidence in Dogecoin's future.
Mid-Term Holders Increase DOGE Holdings
Recent data shows a notable increase in the supply of Dogecoin that was last active between three and six months. Over the past two weeks, mid-term holders have added 4.9 billion DOGE to their holdings, valued at over $1.97 billion.
The accumulation of DOGE by mid-term holders suggests growing confidence in its future price movements. These investors are likely anticipating favorable market conditions to capitalize on potential price surges.
DOGE Price: Potential Recovery Targets
Dogecoin is currently trading at $0.223 and needs to maintain support at $0.222 to sustain recovery prospects. Current trends suggest a bounce off this support, targeting the $0.241 resistance level. A successful break above this resistance could trigger a rally towards $0.273, potentially enabling Dogecoin to recover losses incurred in July.
If Dogecoin surpasses $0.241 and establishes it as a support level, it would reinforce bullish momentum. In that scenario, the next target would be $0.273, providing further gains for investors. The positive sentiment from mid-term holders could contribute to this price movement.
Potential Downturn Scenarios
However, failure to hold the $0.222 support could lead to a price decline, potentially revisiting the $0.209 or even $0.199 level. A further decline would negate the current bullish outlook and prolong recent losses. Therefore, maintaining the $0.222 support is crucial for any recovery attempt.