Dogecoin Price Analysis: Long-Term Investors Boost Confidence, Potential for Bullish Momentum
Crypto News – Earlier concerns about the potential liquidation of $42 million worth of DOGE holdings by FTX have been somewhat alleviated, leading to a slight uptick in Dogecoin price to $0.062 this week. Recent on-chain data analysis explores how the confidence exhibited by long-term investors could pave the way for further price gains in the coming days.
Last week, Dogecoin faced downward pressure following initial reports suggesting that the distressed FTX Exchange might liquidate $42 million worth of DOGE tokens to settle its creditors as part of its ongoing bankruptcy proceedings.
However, official court filings released on Wednesday revealed that DOGE was notably absent from the top 10 crypto assets list in FTX’s $3.4 billion estate. Subsequently, DOGE’s price saw an increase from $0.060 to $0.062, prompting speculation about potential upward movement.
Dogecoin’s Long-Term Investors Demonstrate Confidence in Gains
In contrast to several projects in the top 100 crypto rankings experiencing significant dips, Dogecoin has managed to maintain its position above the $0.060 mark. On-chain data underlines the optimistic stance of long-term DOGE investors, which has played a crucial role.
According to data from IntoTheBlock, addresses categorized as Long-term Holders have increased their DOGE holdings by 1.2 billion between August 14 and September 15. Concurrently, short-term traders have sold off 1.56 billion coins.
In cryptocurrency terminology, wallets that have retained their coins without movement for a year or more are referred to as “Long-term Holders.” The provided chart distinctly illustrates that not only are Dogecoin long-term investors HODLing, but they are also actively augmenting their holdings.
This development is viewed as a bullish signal, especially in the midst of adverse market fluctuations. Consequently, this may influence newer participants and investors to make positive bets on Dogecoin’s price prospects. If this pattern persists, Dogecoin could potentially achieve significant gains once the prevailing sentiment in the memecoin markets turns bullish.
Price Momentum Tilting Towards Bullish Territory
Dogecoin bulls have gathered notable momentum since official court filings excluded DOGE from the list of FTX liquidation assets. The current Relative Strength Index (RSI) trends further support this assertion.
The provided chart demonstrates that since September 11, the daily RSI for DOGE has been trending upwards, reaching 40.45 on September 15.
The Relative Strength Index evaluates the strength and momentum of the current price trend. As the DOGE RSI trends upwards into the lower 40s, it signifies that the market has shifted from oversold conditions to a more balanced or neutral momentum.
In summary, as long-term investors continue to HODL, Dogecoin’s price could potentially transition into a more bullish scenario in the upcoming weeks.
DOGE Price Prediction: $0.07 Resistance Poses a Challenge
From an on-chain perspective, Dogecoin’s price seems poised for further gains when the momentum in the broader crypto markets turns bullish. However, the sell-wall at the $0.07 range could present a significant obstacle.
The Global In/Out of the Money Around Price (GIOM) chart, depicting the entry price distribution of current Dogecoin holders, also supports this prediction.
It vividly illustrates that 377,570 addresses acquired 35 billion DOGE at an average price of $0.068. Profits realized at this level could potentially trigger a correction in Dogecoin’s price.
Nevertheless, if the resistance level is breached, the bulls might propel the Dogecoin price rally towards $0.08.
Conversely, a prolonged downswing could occur if the DOGE price falls below $0.055, wherein the 466,770 addresses that bought 6.45 billion DOGE at a maximum price of $0.060 could offer initial support.
While unlikely, if this support level fails to hold, Dogecoin’s price could decline towards $0.055.