Leading meme coin Dogecoin (DOGE) has surged 21% over the past week, riding on improvements in broader market sentiment and renewed investor confidence.
On-chain data reveals a consistent pattern of hodling among long-term investors. This behavior signals conviction and hints at the likelihood of a sustained uptrend.
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Dogecoin Holders Lock In
One key metric highlighting this renewed optimism is the coin’s liveliness, which measures the extent to which long-term holders (LTHs) are spending their coins.
According to Glassnode, DOGE’s liveliness has plunged steadily over the past month. The move points to a sharp slowdown in selloffs among these investors. As of this writing, the metric is 0.705, suggesting that many long-held DOGE have become dormant.
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This supports the narrative of a conviction-led holding, which could help DOGE record more gains in the short term.
Moreover, DOGE’s Hodler Net Position Change has recorded a steady uptick since September 7. Thus, confirming that more coins are being moved into long-term storage.
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According to Glassnode, this metric tracks the net position of long-term holders over a given period, measuring whether investors are increasing or reducing their exposure. A positive reading indicates that more coins are being transferred into hodler wallets.
For DOGE, this is a bullish trend, as it reduces the available supply in circulation and reflects a vote of confidence from committed investors.
Can Holders Push Past $0.29 Before a Pullback?
This wave of accumulation strengthens the case for continued upside momentum. If the trend persists, it could propel DOGE past the resistance at $0.29 and toward $0.33, a high it last reached in January.
However, daily chart readings from DOGE’s Money Flow Index (MFI) show the momentum indicator hovering around the overbought zone. This signals a potential pullback. As of this writing, the indicator, which measures buying and selling pressure by combining price and trading volume, is at 80.29.
Typically, the MFI ranges between 0 and 100, with values above 80 considered overbought and readings below 20 signaling oversold conditions.
When the indicator pushes into the overbought zone, as DOGE currently has, it suggests that buying pressure may be peaking and a short-term correction or price consolidation could follow.
If this plays out, DOGE risks plummeting below $0.2583.
Source: https://beincrypto.com/doge-price-rally-driven-by-holder-accumulation/