- Dogecoin price recovered to the $0.40 level on Monday after a 15% decline from its three-year high recorded on November 12.
- The Dogecoin Age Consumed metric is falling 95% from last week’s high, signaling a decline in selling pressure among long-term holders.
- The volume weighted average price of DOGE (VWAP) has fallen below the market price, showing increasing demand in the short term.
Dogecoin price broke the $0.40 resistance on Monday, rebounding from a 15% decline. On-chain transaction flows observed this week suggest that DOGE could be poised to rise further towards $0.50.
Dogecoin Reclaims $0.40 as Selling Pressure Drops 95%
On November 14, Dogecoin price reached a three-year high of $0.44 amid bullish sentiment following Trump’s confirmation of That of Elon Musk participation in the proposed Department of Government Effectiveness (DOGE) project.
As markets peaked with monthly gains of 185% on November 12, traders began to take profits, which saw the DOGE price succumb to a 15% correction before opening trading at 0 $.37 Tuesday.
Dogecoin Price Action | DOGEUSD
However, on-chain Dogecoin transaction flows observed this week suggest that selling pressure has significantly diminished, a move that could potentially spark another upward price trend.
Santiment’s Age Consumed metric multiplies tokens traded by the number of days since they were last moved.
This serves as an indicator to monitor spikes and dips in selling activity among long-term holders.
Dogecoin Price Compared to Consumed Age | Feeling
As traders began recording profits on November 12, the consumed age reached 1 trillion DOGE.
Within 24 hours of the spike, Dogecoin’s price rally ground to a halt as long-held coins flooding the markets eclipsed short-term demand.
However, the selling pressure has now eased this week as the value of Consumed Age fell to 49 billion DOGE as of Monday’s close, reflecting a 95% decline.
Simply put, the decline in the consumed age metric implies that fewer long-held tokens are currently being traded.
This could be bullish for Dogecoin price action for two main reasons.
First, with fewer dormant coins entering circulation, spikes in demand for DOGE could trigger rapid price increases.
Furthermore, the reluctance of long-term traders to sell despite triple-digit gains in November could reinforce bullish sentiment among potential new entrants.
These dynamics suggest that Dogecoin could regain its upward momentum, particularly if new demand outpaces dwindling supply in the near term.
Dogecoin Price Forecast: All eyes on $0.44 resistance
Dogecoin price is showing promising bullish momentum with the volume weighted average price (VWAP) at $0.395, below the current market price of $0.399. This reflects growing near-term demand as the majority of buyers now bid higher prices to get their orders filled rather than waiting for market orders.
In terms of short-term price projection, the Donchian Channel indicator shows that DOGE faces initial resistance at the $0.44 level, which coincides with last week’s high.
Dogecoin Price Forecast | DOGEUSD
A break above the $0.44 resistance would confirm the continuation of the uptrend, possibly targeting $0.50 as the next step.
This scenario aligns with the obvious accumulation phase, as DOGE’s sustained position above VWAP means that bullish sentiment dominates the market.
In contrast, Donchian Channels also highlights that the channel midline at $0.29 now serves as critical support.
Any break below this level could invalidate the bullish narrative and lead to a correction towards $0.20, the lower boundary of the channel.