Dogecoin (DOGE), a leading coin, is signaling a potential breakout from its tight trading range.
If this momentum continues, it could return to its multi-year high of $0.48, fueled by extended holding periods and increased accumulation by large holders.
Dogecoin Investors Reduce Distribution
The on-chain evaluation of DOGE’s performance revealed a significant increase in the holding time of all its traded coins over the past seven days. According to IntoTheBlock, this figure increased by 302% during the reporting period.
The holding time of coins traded on an asset represents the average length of time tokens are held in wallets before being sold or transferred.
Longer holding periods like this reduce selling pressure in the DOGE market. This reflects a stronger conviction among investors, who are choosing to hold onto their coins rather than selling them.
In addition to reducing sales activity, DOGE whales have have increased their holdings over the past week. This is reflected in the 112% increase in net flow from its large holders during this period.
Measuring the net flow of large holders of an asset tracks the movement of coins into and out of wallets controlled by whales or institutional investors. When this measure peaks, it suggests that these large holders are accumulating more assets, signaling increased confidence in future price action.
DOGE Price Prediction: Uptrend May Continue
If this bullish momentum continues, DOGE will extend its weekly peak of 3%. As buying pressure builds, the coin could revisit its four-year high at $0.48.
However, this bullish outlook will be invalidated if accumulation stops and selling activity resumes. In this scenario, DOGE price could drop to $0.29.
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