- Dogecoin holders maintain positions despite price drop
- On-chain metrics show decreased circulation and increased holding time
- Technical analysis suggests potential bullish breakout
Despite a recent price correction from $0.43 to $0.37, Dogecoin (DOGE) holders are displaying remarkable resilience by maintaining their positions. On-chain data suggests this steadfast holding behavior could signal an imminent price surge for the leading meme cryptocurrency.
Dogecoin Holding Time Metrics Reach New Heights
Data from IntoTheBlock reveals a significant shift in investor behavior, with the Coin Holding Time metric surging by over 100%. This crucial indicator, which tracks the duration of unmoved coins, points to strengthening investor conviction.
Source: IntoTheBlock
“The increase in holding time typically serves as a bullish indicator,” notes the analysis. “Current data suggests investors are choosing to accumulate rather than distribute their holdings.”
Santiment’s on-chain analysis provides additional support for the bullish thesis. The platform reports a dramatic decrease in DOGE circulation, plummeting from 5.88 billion to 969.06 million coins.
“This substantial reduction in circulation often correlates with decreased selling pressure,” the report indicates. “The current metrics suggest a potential supply squeeze forming in the market.”
The 4-hour chart reveals the formation of a bull flag pattern, mirroring a similar setup that preceded DOGE’s previous 100% rally. This technical formation typically signals a continuation of the underlying uptrend following a period of consolidation.
The combination of strong holding patterns, reduced circulation, and bullish technical formations suggests DOGE could target the $0.50 level in the near term. However, analysts caution that a shift in holder behavior could trigger a retreat below $0.30.
As the market consolidates, the steadfast behavior of DOGE holders continues to shape the asset’s potential trajectory, with on-chain metrics providing compelling evidence for a possible upward breakout.
