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Dogecoin price has trended slightly upward to $0.062 this week after recent court filings allayed initial fears that FTX could liquidate DOGE holdings worth $42 million. On-chain data analysis explores how the confidence shown by long-term investors could yield more Dogecoin price gains in the coming days.
Dogecoin price wobbled under pressure last week as early reports suggested that the troubled FTX Exchange was set to liquidate DOGE tokens worth $42 million to repay creditors as part of its ongoing bankruptcy proceedings.
However, in official court filings released on Wednesday, DOGE was conspicuously absent from the top 10 crypto assets list in FTX’s $3.4 billion estate. Since then, DOGE’s price has increased from $0.060 to $0.062. Can the bulls push for more gains
Dogecoin Long-Term Investors Are Holding Out For More Gains
Bearish headwinds in the crypto markets over the past month have seen several projects in the top 100 crypto rankings, like Litecoin (LTC), Sandbox (SAND), and Apecoin (APE), drop to yearly and all-time lows.
But during this torrid period, Dogecoin has managed to hold above the $0.060 territory. On-chain data shows that the positive disposition of DOGE long-term investors has been pivotal.
According to data from IntoTheBlock, Long-term Holder addresses have increased their balances by 1.2 billion DOGE between August 14 and September 15. While simultaneously, short-term traders sold off 1.56 billion coins.
In crypto parlance, wallets that have held their coins unmoved for 1 year or more are called “Long-term Holders.” The chart above clearly illustrates that Dogecoin long-term investors are not only HODLing but also actively increasing their holdings.
It is a bullish signal when this happens, especially during adverse market fluctuations. Hence, this could influence newer participants, and investors also take positive bets on Dogecoin price prospects.
If this assumption holds, Dogecoin could score significant gains once the prevailing sentiment in the memecoin markets flips bullish.
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The Price Momentum is Shifting Towards the Bullish Territory
Dogecoin bulls have gained significant momentum since official court filings revealed DOGE is not on the list of FTX liquidation assets. Indicatively, the current Relative Strength Index (RSI) trends further affirm the claims.
The chart below illustrates that since September 11, the DOGE daily RSI has trended upward, hitting 40.45 on September 15.
The Relative Strength Index data assesses the strength and momentum of the current price trend. As the DOGE RSI trends upwards into the lower 40s, it signals that the market has moved from oversold conditions into a more balanced or neutral momentum.
In summary, the long-term investors keep HODLing, the Dogecoin price could eventually transition into a more bullish scenario in the coming weeks.
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DOGE Price Prediction: The $0.07 Resistance Could Prove Daunting
From an on-chain perspective, Dogecoin price looks set to score more gains when the momentum in the broader crypto markets flips bullish. However, the sell-wall at the $0.07 range could form a major stumbling block.
The Global In/Out of the Money Around Price (GIOM), which depicts the entry price distribution of current Dogecoin holders, also affirms this prediction.
It vividly illustrates that 377,570 addresses had bought 35 billion DOGE at the average price of $0.068. If they book profits early, they could trigger a Dogecoin price correction.
But if the resistance level gives way, the bulls could push the Dogecoin price rally toward $0.08
Still, the bears could force a prolonged downswing if the DOGE price falls below $0.055. In that case, the 466,770 addresses had bought 6.45 billion DOGE at the maximum price of $0.060 could offer initial support.
Although unlikely, if that support level fails to hold, then Dogecoin price could decline toward $0.055.
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