Leading coin Dogecoin (DOGE) has seen a notable price rise over the past week, outperforming its major coin rivals. During this period, DOGE soared 23%, surpassing Shiba Inu (SHIB), which rose 14%, and Pepe (PEPE), which gained 4%.
As short-term holders (STH) of DOGE extend their holding periods, the price of the meme coin could continue its short-term upward trend.
Short-Term Dogecoin Holders Fuel Rally
According to IntoTheBlock, DOGE’s STH (those who have held the asset for less than a month) have increased their holding duration by 110% over the past month.
When an asset’s STH increases its holding period, it signifies a shift in investor sentiment from short-term speculation to a longer-term investment approach. This reduces overall selling pressure on the cryptocurrency and can help stabilize prices and avoid sharp declines.
Short-term holders (STH) play a vital role in price dynamics because they react quickly to market movements and cause immediate fluctuations through their trading activities. When STHs extend their holding period, they reduce selling pressure, thereby helping to stabilize the asset’s price and potentially creating the conditions for bullish momentum.
Additionally, DOGE’s positive funding rate, which stands at 0.0011% at press time, supports this bullish outlook. These are periodic fees paid between traders in perpetuity eventually contracts to keep the contract price aligned with the spot price of the underlying asset.
A positive funding rate means that long positions (buyers) are paying for short positions (sellers), indicating bullish sentiment and higher demand for leveraged long positions.
DOGE Price Prediction: Short-Term Holders Should HODL
If DOGE STH maintains its hodling strategy, its price could extend its upward trend and reach the four-year high of $0.48.
However, a negative change in strategy would invalidate this bullish projection. If this cohort of DOGE Holders Begin sell for profit, this could result in price of the same part to plunge to $0.299.
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