About a week ago, Dogecoin (DOGE) price touched $0.43, however, it recently dropped to $0.37. Despite this decline, it appears that Dogecoin holders are still not selling, showing strong belief in the potential of this Cryptocurrency.
This could imply that DOGE price is ready for its next growth spurt. Below is the reason why.
Dogecoin Investors Hold Instead of Taking Profits
It’s been seven days since Dogecoin’s price peaked for the year. Despite the decline, data from IntoTheBlock shows that coin holding times have increased by over 100%.
Momentum Holding Time indicators measure the length of time a Cryptocurrency is held without being traded or sold, providing a view into investor behavior. When this indicator decreases, it means investors are selling, and the price may decrease.
However, as the holding period increased, the majority of Dogecoin holders refused to trade their coins. This is generally a positive signal, and if this continues, the value of Cryptocurrencies may continuously increase.
Furthermore, on-chain data from Santiment shows a significant decrease in Dogecoin circulation. Circulation represents the number of coins involved in transactions during a set period of time.
In most cases, when this indicator increases, selling pressure can increase. However, with DOGE, circulation has decreased from 5.88 billion to 969.06 million as of this date.
Like Holding Time, a decrease in circulation is a positive sign, showing that buying pressure is increasing. If this decline continues, the price of DOGE could surpass the $0.37 threshold.
DOGE Price Prediction: Strong Growth Potential
Once again, Dogecoin has formed a bullish flag pattern on the 4-hour chart. Last time this happened, DOGE price increased by over 100%.
The bullish flag is a continuation pattern that shows the possibility of a continuation of the price trend after a slight decline or consolidation. When the price breaks out of the pattern, it usually continues its upward journey.
Considering this scenario, Dogecoin price is likely to surpass the $0.50 threshold in the short term. However, if Holder Dogecoin starts selling, this may not happen. In that case, Meme Coin Coin could drop below $0.30.