About a week ago, the price of Dogecoin (DOGE) reached $0.43, but it has since fallen to $0.37. Despite the decline, it appears that Dogecoin holders are not resorting to selling, suggesting increased conviction in the meme coin’s potential.
This sentiment could imply that DOGE price is ready for the next rally. Here’s why.
Dogecoin Investors Stick to HODLing Instead of Taking Profits
It has been seven days since the price of Dogecoin reached its yearly high. Despite a decline since then, data from IntoTheBlock shows that coin holding time has increased by over 100%.
Coin Holding Time indicators measure the length of time a cryptocurrency has been held without being traded or sold, providing insight into investor behavior. When it goes down, it means holders are selling and the price may fall.
However, as detention time increased, most Dogecoin holders abstained to trade their coins. This is generally a bullish sign, and if it remains the same, the value of the cryptocurrency could continue to rise.
Beyond that, Santiment’s on-chain data shows a notable decline in Dogecoin circulation. Circulation indicates the number of coins involved in transactions during a given period.
In most cases, when this metric increases, it means that selling pressure has potentially increased. However, for DOGE, the circulation increased from 5.88 billion to 969.06 million as of this writing.
Like Coin Holding Time, decreasing circulation is a bullish sign, indicating increasing buying pressure. If this decline continues, DOGE Price Could Rebound greater than $0.37.
DOGE Price Prediction: Major Rebound Likely
Once again, Dogecoin formed a bull flag on the 4-hour chart. The last time this happened, the price of DOGE increased by over 100%.
A bull flag is a continuation pattern that signals a likely continuation of an uptrend in price after a brief pullback or consolidation. When price breaks out of the trend, it usually resumes its upward trajectory.
Given this outlook, Dogecoin price is expected to rise above $0.50 in the near term. However, if Dogecoin holders start sellingit might not happen. In this case, the meme coin could fall below $0.30.
Disclaimer
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